Rain Industries Limited · NSE:RAIN
Rain Industries — Q4 CY23 Earnings Presentation
21 slides from Rain Industries's earnings presentation, Feb 24, 2024
Slide 1: Rain Industries Limited
RAIN INDUSTRIES LIMITED RIL/SEs/2024 February 24, 2024 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra East Mumbai-400 001 Mumbai – 40
Slide 2: Earnings Presentation – Q4 CY23
RAIN INDUSTRIES LIMITED Earnings Presentation – Q4 CY23 RAIN is a leading vertically integrated global producer of a diversified portfolio of products that are essential raw materials for staples of everyday life. We operate in three business segments: Carbon, Cement and Advanced Materials. Our Carb
Slide 3: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including our statements addressing our expectations for segment volumes an
Slide 4: Key Highlights – Q4 2023
Key Highlights – Q4 2023 • Revenue from Operations was ₹41.01 billion • Adjusted EBITDA was ₹2.78 billion • Due to increase in Weighted Average Cost of Capital (WACC), the Company has taken Non- cash Goodwill Impairment Charge of ₹7.32 billion • Carbon segment performance impacted due to deferred sh
Slide 5: Key Highlights – CY 2023
Key Highlights – CY 2023 Industry Head-winds impacting revenues and margins • Revenue from Operations was ₹ 181.42 billion for the year • Adjusted EBITDA was ₹ 20.14 billion for the year Completed Refinancing, pushing out maturities to 2028 and 2029 • Repayment of long-term debt of US$ 81 million an
Slide 6: Update on Pet Coke Restrictions in India
Update on Pet Coke Restrictions in India Allocation of Raw / Green Petroleum Coke (“RPC / GPC”) for the period April 2023 to March 2024: • Directorate General of Foreign Trade (“DGFT”) allocated a total GPC of 0.59 million Tons for FY 2023-24 including the second allocation in December 2023 and the
Slide 7: Aluminium Market Update
Aluminium Market Update Primary Aluminium Production Growth in Thousand Tonnes Not to Scale 28,706 29,121 29,728 30,493 40,145 41,194 41,733 42,199 2022 2023 China ROW 2024 (F) 2025 (F) LME AL Inventory (Million MT) vis-à-vis LME AL Quote (000 US$ per MT) 2 4.0 Inventory LME Quote LMQ Quote ())) US$
Slide 8: Price Trend of Key Products and European Natural Gas
Price Trend of Key Products and European Natural Gas Not to Scale 1,473 1,135 984 972 996 984 972 899 803 864 Fall in prices negatively 791 706 679 698 700 impacting 675 635 626 552 592 finished goods prices and 700 647 479 529 568 margins 468 445 455 415 420 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-2
Slide 9: Revenue by End Industry
Revenue by End Industry Coatings Wood preservation Wood preservation TiO2 TiO2 Energy 3% Energy 3% Coatings 4% 3% 3% 2% 1% 2% Others Specialty chemicals Others Specialty chemicals 20% 2% 17% 2% Carbon black 7% Carbon black 7% Graphite 4% Graphite 6% Construction Construction 8% 11% Aluminium Alumini
Slide 10: Consolidated Revenue and EBITDA Q4-2023
Consolidated Revenue and EBITDA Q4-2023 (₹ in Billions) Revenue (excluding other operating income) Adjusted EBITDA Note: Charts not to scale 9
Slide 11: Non-cash Impairment Charge – December 2023
Non-cash Impairment Charge – December 2023 • Geopolitical tensions and macroeconomic factors, such as rising interest rates and energy cost fluctuations, have impacted the economic environment for all our Five Cash Generating Units (CGUs). • As a result of these factors, the recoverable values of tw
Slide 12: Carbon: Revenue and EBITDA
Carbon: Revenue and EBITDA Q4 CY23 Q4 CY22 • Revenue in Q4 CY23 decrease driven by CY23 CY22 34.79 o Lower prices across all key products due to fall in market quotations 2,430 across all regions 154.61 2,315 o Lower volumes due to lower demand and delayed shipments 132.97 • Margins lower compared t
Slide 13: Advanced Materials: Revenue and EBITDA
Advanced Materials: Revenue and EBITDA Q4 CY23 Q4 CY22 • Revenue in Q4 CY23 decrease driven by 310 CY23 CY22 1.51 o Lower average prices driven by fall in 1.35 commodity prices and change in 39.10 product mix 254 o Offset by increase in volumes driven 32.32 by timing of maintenance shutdowns • Margi
Slide 14: Cement: Revenue and EBITDA
Cement: Revenue and EBITDA Q4 CY23 Q4 CY22 • Revenue in Q4 CY23 increase driven by CY23 CY22 1.41 o Increase in volumes 3,238 15.34 3,124 15.23 o Offset by decrease in realisations 1.06 • Margins improved due to o Higher volumes o Lower operating costs 0.54 0.45 896 4.26 4.10 807 Volumes (MT 000) Re
Slide 15: Debt Summary
Debt Summary US$ in Millions Dec 2023 Dec 2022 Cash Inflows / Outflows during CY 2023 USD-denominated Senior Secured Notes • Operating cash flows includes net working capital 50 530 (due in April 2025) inflows of ₹16.52m billion (compared to outflows USD-denominated Senior Secured Notes 450 - of ₹20
Slide 16: Business Outlook
Business Outlook • Margins are expected to normalize; the current impact is temporary. • Structural cost improvements achieved in 2023 will fully contribute to results in 2024. • The recent CAQM order is anticipated to increase plant utilization in upcoming quarters. • Cash invested during the upcyc
Slide 17: Thank You
Thank You RIO
Slide 18: Appendix
Appendix
Slide 19: Summary of Consolidated Income Statement
Summary of Consolidated Income Statement ₹ in Millions Particulars Q4 2023 Q4 2022 CY 2023 CY 2022 Net Revenue 40,788 54,112 180,518 209,063 Other Operating Income 218 456 897 1,048 Revenue from Operations 41,006 54,568 181,415 210,111 Reported EBITDA 1,678 6,629 17,374 36,381 Adjusted EBITDA 2,779
Slide 20: Reconciliation of EBITDA and PAT
Reconciliation of EBITDA and PAT ₹ in Millions Particulars Q4-CY23 CY-2023 EBITDA PAT EBITDA PAT A. Reported 1,678 (11,188) 17,374 (9,379) B. Adjustments/Exceptional items: • Inventory adjustments 183 183 2,514 2,514 • Non-cash impairment charge - 7,506 - 7,506 • Expenses towards non-recurring items
Slide 21: RAIN – Key Business Strengths
RAIN – Key Business Strengths • Three business segments (Carbon, Advanced Materials and Cement) • Global presence with 2.4 million tonnes p.a. calcination capacity, 1.0 million tonnes p.a. CPC blending capacity, 1.3 million tonnes p.a. coal tar distillation capacity, 0.6 million tonnes p.a. advanced