RHI Magnesita India (534076) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue in Q3 FY25, surpassing INR 1,000 crores, with 17% sequential growth in revenue and 20% increase in shipments, driven by disciplined execution, market share gains, and strategic expansion despite challenging market conditions and increased import competition.

• Strategic initiatives in iron making, DRI, and pellet business drove 7% growth; steel revenue rose 8% despite market headwinds.

• Maintained focus on operational efficiency, cost control, and sustainable growth, with a target to reach 40% market share in four years.

• Board approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, reviewed by Price Waterhouse Chartered Accountants LLP with no material misstatements.

Financial highlights

• Q3 FY25 consolidated revenue: INR 1,011 crores (₹101,070 lakh), up 17% quarter-on-quarter; shipments increased 20%.

• EBITDA for the quarter was INR 132 crores (₹13,192 lakh), up 8% sequentially, despite margin dilution from high raw material costs.

• Profit after tax for Q3 FY25: INR 48 crores (₹4,754 lakh), up 3.5%-4% quarter-on-quarter.

• Working capital intensity improved to 35%, with better DSO, DIO, and DPO metrics.

• Dividend payment of INR 51 crores; ECB loan repayment completed; net debt/EBITDA remains flat at 0.3x.

Outlook and guidance

• Margins remain resilient and in line with medium-term expectations despite rising raw material costs, especially alumina-based materials.

• Cautiously optimistic for the short term, with focus on cost control and operational efficiency to sustain margins.

• Expectation to return to 15% EBITDA margin from Q2 FY2026, aided by lower raw material costs and potential price increases.

• Long-term ambition to operate at 30% working capital intensity.

• Projected 8%-9% volume growth, outpacing market growth.