RHI Magnesita India (534076) Q4 15/16 earnings summary

Executive summary

• FY16 total revenue was Rs. 46,426.22 lakh, PBT rose 6.3% YoY to Rs. 8,465.64 lakh and net profit reached Rs. 5,581.84 lakh.

• Results improved despite low capacity utilization, weak global demand, lower exports and volatile exchange rates.

Financial highlights

• Net revenue from operations was Rs. 45,888.33 lakh versus Rs. 45,136.48 lakh; total revenue, including other income, was Rs. 46,426.22 lakh versus Rs. 45,599.99 lakh.

• Profit before depreciation, interest and tax was Rs. 9,056.46 lakh versus Rs. 8,516.37 lakh; depreciation was Rs. 590.62 lakh and finance costs Rs. 0.20 lakh.

• Net profit was Rs. 5,581.84 lakh versus Rs. 5,283.94 lakh; basic and diluted EPS were Rs. 4.65 versus Rs. 4.40.

Outlook and guidance

• FY17 steel-industry growth was projected at 7–8%, with expected Indian GDP growth of 7.8%; directors aimed to sustain FY16 growth.

• Infrastructure investment, GST reforms, Make in India and improved monsoons were identified as potential supports for steel-sector growth.

• Outlook depended on steel-industry growth; forward-looking assumptions were subject to actual results differing from expectations.