RHI Magnesita India (534076) Q4 19/20 earnings summary

Executive summary

• FY20 standalone revenue fell 6.93% YoY to Rs 69,609.40 lakh; PBT declined 15.14% to Rs 11,669.75 lakh and PAT was Rs 8,725.08 lakh.

• COVID-19 lockdown disrupted operations from 24 March; limited plant operations resumed from 8 May, with dispatches restarting from 20 April.

• The Board recommended a final dividend of Rs 2.50 per share, unchanged from FY19, subject to shareholder approval.

Financial highlights

• Standalone operating profit was Rs 12,122.95 lakh versus Rs 12,798.07 lakh; total revenue was Rs 70,251.97 lakh versus Rs 76,611.99 lakh.

• Standalone PAT was Rs 8,725.08 lakh versus Rs 8,982.66 lakh; total comprehensive income was Rs 8,665.12 lakh versus Rs 8,963.15 lakh.

• Consolidated revenue was Rs 69,968.82 lakh, PBT Rs 11,732.97 lakh and PAT Rs 8,686.55 lakh; first-time consolidation began with the subsidiary acquisition, so prior-year figures are not comparable.

• Standalone operating cash flow was Rs 9,693.28 lakh; cash and cash equivalents at year-end were Rs 10,969.67 lakh.

Outlook and guidance

• Gradual steel-demand recovery was expected in H2 FY21, supported by supply-side adjustments, exports, policy stimulus and normal monsoon expectations; a pandemic resurgence remained a risk.

• Forecasts remained uncertain: Indian steel production was expected to reach 90 million tonnes versus 109 million tonnes in 2019; refractory-industry visibility for FY21 was difficult.

• Management expected mini-mills to operate at 50–60% capacity in June 2020 and 80–90% from September; integrated mills were expected to reach 90% in Q4, subject to labor availability and demand.