RHI Magnesita India (534076) Q4 14/15 earnings summary

Executive summary

• FY15 revenue rose 11.90% YoY to ₹45,668.24 lakh; PBT was nearly flat at ₹7,962.72 lakh and net profit was ₹5,283.94 lakh.

• Refractory and monolithics operations served steel customers in India and overseas; management expected to sustain growth in FY16, subject to industry conditions.

• Statutory auditors issued an unqualified opinion on the FY15 financial statements.

Financial highlights

• Net sales and income ₹45,668.24 lakh vs ₹40,760.54 lakh; net revenue from operations ₹45,136.48 lakh vs ₹40,350.37 lakh.

• PBT ₹7,962.72 lakh vs ₹7,958.48 lakh; net profit ₹5,283.94 lakh vs ₹5,284.64 lakh.

• Operating profit before depreciation, interest and tax ₹8,516.37 lakh vs ₹8,328.55 lakh; depreciation ₹549.31 lakh vs ₹362.58 lakh.

• Revenue from finished goods was ₹40,446.67 lakh and traded goods ₹7,552.71 lakh; service revenue ₹544.75 lakh, down from ₹676.93 lakh.

• Operating cash flow ₹3,380.18 lakh vs ₹2,894.06 lakh; cash and cash equivalents closed at ₹2,162.66 lakh vs ₹1,509.05 lakh.

Outlook and guidance

• FY16 Q1 sales were ₹10,963.73 lakh vs ₹10,806.40 lakh in Q1 FY15, up 1.46% YoY.

• Directors expected to sustain growth in FY16 and pursue growth in domestic and export markets, supported by government reforms and the RHI affiliation.

• Management cautioned that actual outcomes could differ from forward-looking expectations due to global economic conditions and government policies.