RHI Magnesita India (534076) Q4 11/12 earnings summary

Executive summary

• FY12 results cover the refractory business transferred from Orient Abrasives effective April 1, 2011; the period is not strictly comparable with FY11.

• Gross turnover was ₹30,041.61 lakh, including exports of ₹4,612.16 lakh; gross profit was ₹4,583.67 lakh and net profit ₹3,080.93 lakh.

• Management expected turnover and profitability to increase in FY13, while noting uncertainty in the economic outlook.

Financial highlights

• Net revenue from operations was ₹30,041.61 lakh on gross revenue of ₹32,095.49 lakh; excise duty was ₹2,053.88 lakh.

• Profit before tax was ₹4,583.67 lakh; net profit was ₹3,080.93 lakh after tax expense of ₹1,502.74 lakh.

• Raw material and components consumed cost ₹12,919.94 lakh; employee benefits expense was ₹2,317.82 lakh and other expenses ₹5,754.59 lakh.

• Operating cash flow was ₹3,201.48 lakh; cash and cash equivalents ended FY12 at ₹132.28 lakh.

Outlook and guidance

• Directors expected turnover and profitability to increase in FY13.

• Steel demand for specialized refractories was expected to benefit from a greater focus on “Clean Metal,” barring unforeseen circumstances.

• FY13 outlook remained uncertain amid weak industrial growth, high deficits and inflation, and a depreciating rupee.