RHI Magnesita India (534076) Q4 12/13 earnings summary

Executive summary

• FY2012-13 net sales and income reached ₹36,189.13 lakh; profit before tax was ₹6,144.26 lakh and net profit ₹4,139.02 lakh.

• Dutch US Holding B.V. acquired 69.62% of shares, bringing a change in control and management during the year.

• The audit opinion was unqualified; audited statements were reported to present a true and fair view.

Financial highlights

• Net sales and income rose 18.76% YoY to ₹36,189.13 lakh; PBT was 16.98% of net sales, versus 15.04% in FY2011-12.

• Net profit increased to ₹4,139.02 lakh from ₹3,080.93 lakh; basic and diluted EPS were ₹3.45 versus ₹2.56.

• Net revenue from operations was ₹35,984.96 lakh, up from ₹30,041.61 lakh; other income was ₹204.17 lakh versus ₹430.76 lakh.

• Finance costs declined to ₹194.03 lakh from ₹387.76 lakh; depreciation and amortization rose to ₹379.21 lakh from ₹296.59 lakh.

Outlook and guidance

• Q1 FY2013-14 net sales were ₹9,698.98 lakh, up 5.43% YoY; PBT was ₹1,848.11 lakh, up 27% YoY.

• Directors expected turnover and profitability to increase in FY2013-14, while noting industry slowdown, inflation and rupee depreciation.

• Export revenue was expected to grow in FY2013-14 following the RHI AG partnership.