RHI Magnesita India (534076) Q4 22/23 earnings summary

Executive summary

• FY23 integrated three leading Indian refractory businesses; acquisitions expanded product breadth, plant footprint and capacity to 537 KTPA, positioning India as a potential manufacturing, R&D and service hub.

• Consolidated revenue grew 36.35% YoY, while a ₹66,068.22-lac goodwill impairment drove a consolidated loss for the year.

• Integration workstreams under Project Milan continue; priorities include synergy capture, plant modernization, productivity, cost management and working-capital discipline.

Financial highlights

• Consolidated revenue from operations was ₹272,626.65 lacs in FY23, up 36.35% YoY from ₹199,937.33 lacs.

• Adjusted EBITDA was ₹4,388 Mn, up 11.5% YoY, with a 16.1% margin; adjusted EBITDA excludes ₹640 Mn of one-time integration expenses.

• Consolidated loss for the year was ₹46,565.22 lacs versus profit of ₹26,900.44 lacs in FY22; goodwill impairment was ₹66,068.22 lacs.

• Consolidated EPS was a loss of ₹27.85 in FY23 versus earnings of ₹16.71 in FY22.

Outlook and guidance

• Integration synergies are expected from cross-selling, fixed-cost optimization, resource bundling, economies of scale and production optimization; realization remains ongoing.

• Plans include modernization and automation at acquired plants, product localization, better inventory management and expansion of solutions contracts and Iron Making/DRI business.

• Indian refractory demand is forecast to grow at a 5.5–6% CAGR from FY22–28; steel production at 6–6.5% and cement production at 6–7% over FY22–28.