RHI Magnesita India (534076) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue in Q3 FY25, surpassing INR 1,000 crores, driven by disciplined execution, market share gains, and strategic expansion despite challenging market conditions and increased import competition.

• Strong shipment growth and resilient margins despite raw material cost pressures, with strategic initiatives in iron making, DRI, and pellet business contributing to performance.

• Board approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, reviewed with no material misstatements.

• Recovery in 4PRO business and growth in cement shipments supported overall results.

Financial highlights

• Q3 FY25 consolidated revenue reached INR 1,011 crores (₹101,070 lakh), up 17% quarter-on-quarter, with a 20% increase in shipments.

• EBITDA for Q3 FY25 was INR 132 crores (₹13,192 lakh), up 8% sequentially, with EBITDA margin at 13.1%.

• Profit after tax for Q3 FY25 rose to INR 48 crores (₹4,773.48 lakh), up 3.5%-4% quarter-on-quarter.

• Working capital intensity improved to 35%, with better DSO, DIO, and DPO metrics.

• Dividend payment of INR 51 crores and ECB loan repayment completed; net debt/EBITDA at 0.3x and remained flat.

Outlook and guidance

• Management expects continued growth driven by strategic initiatives and market share expansion in key segments.

• Cautiously optimistic for the short term, with focus on cost control and operational efficiency to sustain margins.

• Expectation to return to 15% EBITDA margin from Q2 FY2026, aided by lower raw material costs and potential price increases.

• Long-term ambition to operate at 30% working capital intensity.

• Projected 8%-9% volume growth, outpacing market growth.