RHI Magnesita India (534076) Q4 17/18 earnings summary

Executive summary

• FY17-18 revenue from operations was ₹63,559.30 lakh; revenue net of excise duty rose 20.67% YoY to ₹62,678.77 lakh, while PBT increased 24.24% to ₹13,084.53 lakh.

• Export growth, capacity expansion and rising steel output supported growth; management expected to sustain growth in FY18-19.

Financial highlights

• Gross revenue from operations was ₹63,559.30 lakh versus ₹55,620.32 lakh in FY16-17; total expenditure before finance costs and depreciation was ₹50,854.31 lakh versus ₹45,284.23 lakh.

• Operating profit reached ₹12,704.99 lakh, up from ₹10,336.09 lakh; PBT was ₹13,084.53 lakh versus ₹10,531.63 lakh.

• Net profit was ₹8,583.32 lakh versus ₹6,890.89 lakh; total comprehensive income was ₹8,568.89 lakh versus ₹6,861.81 lakh.

• Other income rose to ₹1,062.23 lakh from ₹826.28 lakh; finance costs were nil in both years.

Outlook and guidance

• Directors expected growth to be sustained in FY18-19, supported by positive industry prospects and the group's backing.

• India GDP growth was forecast at above 7%; steel production was expected to grow, with infrastructure, oil and gas, and automotive demand supporting industrial activity.

• National Steel Policy 2017 targets 300 million tonnes of steelmaking capacity and per-capita steel consumption of 160 kg by 2030, supporting longer-term refractory demand.