Rhi Magnesita India Limited · NSE:RHIM
Rhi Magnesita India — FY2023 Earnings Presentation
22 slides from Rhi Magnesita India's earnings presentation, May 31, 2023
Slide 1: Filing cover letter to stock exchanges
RHI MAGNESITA INDIA LTD. (Formerly Orient Refractories Ltd.) 301, 316-17, Tower B, EMAAR Digital Greens Golf Course Extension Road, Sector 61, Gurugram, Haryana-122011, INDIA T +91 124 4062930 E corporate.india@rhimagnesita.com www.rhimagnesitaindia.com Date: 31 May 2023 To, BSE Limited National Sto
Slide 2: Investor Presentation, RHI Magnesita India Limited, May 2023
Investor Presentation RHI Magnesita India Limited May 2023
Slide 3: Agenda
Agenda 1 FY 2023 Update 2 Financial Review 3 M&A 4 Awards & Initiatives RHI Magnesita India PUBLIC
Slide 4: FY 2023 update
FY 2023 update
Slide 5: Profit and Loss Summary
Profit and Loss Summary FY 23 Vs FY 22 ⬢ Impairment loss on account of Goodwill In accordance with Indian accounting practices, the purchase price consideration paid to acquire Indian Refractory Business of Dalmia Group is fair valued using the share price at acquisition date (5th Jan 2023) i.e., ₹
Slide 6: Strong Revenue Growth on consolidated levels
Strong Revenue Growth on consolidated levels Revenue supported by significant volume increase 329 ⬢ Market share gain in steel and industrial with the acquisition of DOCL and Hi-tech Chemicals 196 214 (JSP) 27,266 - Volume increase @ 54% including 19,951 standalone @ 34% 13,704 Volume (kt) Revenue (
Slide 7: Consolidated Financial highlights
Consolidated Financial highlights Revenue and EBITDA growth with slight decline in margins Total Revenue Adjusted EBITDA Adjusted EBITDA margin Cash returned to shareholders ₹27,263m ₹4,388m 16.1% ₹402m 37% 11.5% 363bps Free cash flow Capex Dividend per share Earnings per share* ₹2,602m ₹423m ₹2.5ps
Slide 8: Financial Highlights on consolidated levels
Financial Highlights on consolidated levels Capacity (kt) 525 Revenue (₹ Mn) 27,266 EBITDA Margin (%)* 19,689 15.9% 19.6% 16.1% 16.0% 145 13,574 115 122 13,727 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 EPS (per share) Market capitalization (₹ bn) Dividend (per share) 16.7 118 14.5
Slide 9: 2023: A year of strategic progress
2023: A year of strategic progress Sustainability at core Balanced Portfolio and go-to-market ✓ Utilization of recycled refractory ✓ Recent acquisitions create 19.3 17.8 17.1 16.4 15.5 16.8 15.9 15.0 material significantly reduces balanced portfolio and a strong emissions (Every tonne recycled 20.0%
Slide 10: Financial Review
Financial Review
Slide 11: 2023 Revenue Bridge
2023 Revenue Bridge Strong revenue growth through increased volumes offset by slightly softer pricing ₹ mn 2,357 321 22 27,263 6,762 24,562 -1,674 -477 Steep rise in FY 22’s 19,951 freight and raw material cost led to unprecedented rise in selling price 13,704 2021 2022 Volume Price One time RHIM DO
Slide 12: 2023 EBITDA Bridge
2023 EBITDA Bridge Higher volumes offset by softening of prices and one-time costs impacted EBITDA ₹ mn 2,338 Integration : ₹ 137m Stamp duty : ₹ 302m Write offs : ₹ 118 m Others : ₹ 83m 239 55 25 4,388 -1,726 4,069 3,935 -477 3,748 -640 2,209 2021 2022 Volume Price One time RHIM DOCL JSP Eliminatio
Slide 13: 2023 Debt including short term
2023 Debt including short term Comfortable debt position following successful QIP paying majority acquisition debt ₹ mn 1,782 14,927 Use of QIP Proceeds for 2,254 -700 repayment of loan 11,000 -7,500 5,043 -2,383 601 590 2021 2022 Acquisition ECB Working Prepayment 2023 Repaid Internal Apr-23 Capita
Slide 14: 2023 Cashflow
2023 Cashflow Comfortable cash position post acquisitions ₹ mn Loan for acquisitions 13,244 Hi-tech : ₹ 6,150 m Acquisition of DOCL : ₹ 4,850 m Hi-tech : ₹ 7,341 m ECB : ₹ 2255 m DOCL : ₹ 390 m 3,748 -421 -11,243 3,261 -713 -325 -984 -423 781 -402 Cash 2022 EBITDA WC Tax Capex Dividend Debt M&A Prep
Slide 15: Working Capital
Working Capital Improved cash conversion cycle Inventories (₹ m) Inventory days Working capital (₹ m) 124 121 110 109 Cash conversion cycle 9,562 105 6,077 7,049 5,897 96 87 FY22 H1 FY22 Dec-22 Mar-23 76 Receivables (₹ m)1 Receivables day 94 108 11,095 89 92 10,251 5,815 6,463 6,498 7,584 7,284 6,63
Slide 16: M&A
ud + wn f = a oe
Slide 17: Acquisition of Dalmia OCL
Acquisition of Dalmia OCL Overview Production & mining footprint Strategic focus for acquisition Operations footprint DOCL production DOCL mine RHI Magnesita ▪ Well established operations with ▪ Transaction History production footprint in west and south India ▪ Executed Business transfer agreement a
Slide 18: Acquisition of Hi-tech Chemicals
Acquisition of Hi-tech Chemicals ₹ mn Overview Production & mining footprint Strategic focus Operations footprint Production site ▪ Increase RHIM´s flow-control ▪ Transaction History production capacities in India with ▪ Executed Business transfer agreement in October 2022 market standard low-pressu
Slide 19: Awards and Initiatives
Awards and Initiatives
Slide 20: Awards & Initiatives
Awards & Initiatives The India West Asia Africa India’s Best Organisation Safety Performer Award for 2022 Regional President ranks top for Women by The Vizag recognized as Best Safety Performer as best CEOs in India Economic Times (in Cat-3) and won the Bronze award out of total 40 industries Record
Slide 21: CSR Initiatives
CSR Initiatives Education Amenities at Health Amenities Supporting Funded for a hostel building Venkatapuram Government School VRD Trust Hospital at LV Prasad Eye Institute Damaka Village Road ( NH 16 – Damaka Village Spreading awareness through campaigns Before After RHI Magnesita India PUBLIC
Slide 22: Disclaimer
Disclaimer Financial information contained herein, as well as other operational information, were not audited by independent auditors and may include forward-looking statements and reflects the current views and perspectives of the management on the evolution of macro-economic environment, condition