Slide 1: Rain Industries Limited – Earnings Presentation filing letter
R IL RAIN INDUSTRIES LIMITED RIL/SEs/2019 August 13, 2019 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited The National Stock Exchange of India Phiroze Jeejeebhoy Towers Limited Dalai Street, Fort Bandra Kurla Complex Mumbai-400 001 Bandra East Mumbai-4
Slide 2: Earnings Presentation – Q2 CY19
RAIN INDUSTRIES LIMITED Earnings Presentation – Q2 CY19 Investor Relations Contact: 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
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: Second-Quarter Summary
Second-Quarter Summary Financial Highlights • Revenue from Operations is ₹33.4 billion and Adjusted EBITDA is ₹4.5 billion • Adjusted Net Profit After Tax is ₹1.4 billion and Adjusted Earnings Per Share is ₹4.2 • Adequate liquidity to fund operations, CAPEX projects and meet debt obligations in the
Slide 5: Market Update
Market Update Primary Aluminium Production Growth in Thousand Metric Tons LME AL Inventory (Million MT) vis-à-vis LME AL Quote (000 US$ per MT) 6.0 2.5 Not to Scale 2.4 (0.14%) 5.0 2.3 (3.78%) (-0.22%) 2.2 4.0 2.1 Inventory (-3.34%) 2.0 LME (9.85%) 3.0 1.9 (-2.55%) 1.8 2.0 (0.57%) 1.7 1.6 1.0 1.5 1.
Slide 6: Update on Petcoke Import Ban in India
Update on Petcoke Import Ban in India • The Company has been evaluating various regulatory, legal, operational and commercial alternatives to minimize the impact of restrictions on importing GPC and CPC • RAIN’s GPC allocation by the Director General of Foreign Trade (“DGFT”) for the financial year
Slide 7: Ongoing Capital Expansions
Ongoing Capital Expansions Vertical-Shaft Calcination Plant, India • Phase 1 of kiln structuring completed and pre-heating commencement estimated to start by end of Q3 2019 • Total estimated completion costs of US$ 71 million, includes incremental costs of advanced ammonia scrubbing installation, wh
Slide 8: Consolidated Performance – Q2 CY19
Consolidated Performance – Q2 CY19 (₹ in Billions) Revenue (excluding other operating income) Adjusted EBITDA Highlights in Q2 CY19 • Performance in Carbon segment largely impacted by lower volumes and higher raw material costs • Appreciation of US Dollar by 3.7% and depreciation of Euro against INR
Slide 9: Carbon Business Performance – Q2 CY19
Carbon Business Performance – Q2 CY19 (₹ in Billions) *Includes Energy Revenue Sales Volumes (tons in thousands) Revenue (excluding other operating income) Highlights in Q2 CY19 • CPC revenue decreased primarily due to volumes on account of interruption to blending operations in India • Increase in
Slide 10: Advanced Materials Business Performance – Q2 CY19
Advanced Materials Business Performance – Q2 CY19 (₹ in Billions) Sales Volumes (tons in thousands) Revenue (excluding other operating income) Highlights in Q2 CY19 • Revenue decreased due to decrease in volumes and lower realisation due to product mix • Lower volumes in resins business due to reduc
Slide 11: Cement Performance – Q2 CY19
Cement Performance – Q2 CY19 – (₹ in Billions) Sales Volumes (tons in thousands) Revenue (excluding other operating income) Highlights in Q2 CY19 • Revenue from Cement business increased by 25.4% due to increase in volumes and realisations • Sales volumes increased across all markets except Andhra P
Slide 12: Consolidated Debt Position
Consolidated Debt Position $ in Millions Jun.’19 Dec.’18 Highlights in H1 CY19 • Cash and cash equivalents of $133 million and 7.25% USD denominated Senior Secured Notes 550 550 unutilised working capital facilities of $172 million. (due in April 2025) • Capital expenditure of ₹5.0 billion (~$72 mil
Slide 13: Appendix
Appendix
Slide 14: Summary of Statement of Operations
Summary of Statement of Operations ₹ in Millions Particulars Q2 2019 Q1 2019 Q2 2018 CY 2018 Net Revenue 33,231 31,776 37,706 139,608 Other Operating Income 185 189 349 882 Revenue from Operations 33,416 31,965 38,055 140,490 Adjusted EBITDA 4,518 3,551 6,875 21,471 Adjusted EBITDA Margin 13.5% 11.1
Slide 15: Reconciliation of EBITDA and PAT for Q2 CY19
Reconciliation of EBITDA and PAT for Q2 CY19 ₹ in Millions Particulars EBITDA PAT A. Reported 4,199 1,257 B. Adjustments: • Inventory adjustments 206 161 • Insurance claims received during the quarter related to (50) (45) prior periods and other operating income adjustments • On account of strategic
Slide 16: RAIN – Key Business Strengths
RAIN – Key Business Strengths • Three business verticals (Carbon, Advanced Materials and Cement) • Global presence with 2.1 million tons p.a. calcination capacity, 1.0 million tons p.a. CPC blending capacity, 1.3 million tons p.a. coal tar distillation capacity, 0.7 million tons p.a. advanced materi
Slide 17: Thank You
Thank You R’ iL