RHI Magnesita India (534076) Q2 24/25 earnings summary

Executive summary

• Indian economy performed satisfactorily in H1 FY25, but some indicators signal a weaker environment, requiring close monitoring of demand conditions.

• Achieved resilient EBITDA margins despite dynamic market and raw material cost pressures, with strategic initiatives and digital innovations supporting growth in key segments.

• Safety performance improved, with LTIF at 0.05 and TRIF at 0.24, and enhanced EHS culture through technology and training.

• Board approved unaudited consolidated and standalone financial results for the quarter and six months ended September 30, 2024.

• Company remains optimistic about future opportunities, focusing on sustainability and supporting India's manufacturing goals.

Financial highlights

• Consolidated revenue from operations for H1 FY25 was Rs. 174,582.45 lakhs, up 9% year-over-year; Q2 FY25 revenue was Rs. 86,706.56 lakhs.

• EBITDA margin for H1 FY25 was 16%, up c.1% year-over-year; Q2 FY25 EBITDA margin at 14.1%.

• Profit after tax for H1 FY25 was Rs. 11,879.21 lakhs, up 0.3% year-over-year.

• Operating cash flow for H1 FY25 reached Rs. 25,208 lakhs, a 22% increase year-over-year.

• Basic EPS (consolidated) for H1 FY25 was Rs. 5.75.

Outlook and guidance

• Anticipated growth in H2 FY25 driven by customer project commissioning and infrastructure initiatives.

• Margin guidance maintained at around 15% on a sustainable basis, despite sales mix shifts and raw material cost pressures.

• Revenue guidance not provided due to market volatility and raw material price fluctuations, but expectation to grow with the market.

• Strategic initiatives and investments position the company to benefit from upcoming capacity expansions in 2025, especially in cement and iron/pellet/DRI markets.

• Dividend of Rs. 2.50 per share (250% of par value) approved at AGM on September 27, 2024.