Rhi Magnesita India Limited · NSE:RHIM
Rhi Magnesita India — Q1 FY24 Earnings Presentation
14 slides from Rhi Magnesita India's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter: presentation of conference call
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: 10 August 2023 To, BSE Limited National
Slide 2: Investor Presentation, RHI Magnesita India Limited, August 2023
Investor Presentation RHI Magnesita India Limited August 2023
Slide 3: Strong Revenue Growth
Strong Revenue Growth M&A drives revenue gain with nominal organic growth Revenue supported by significant volume increase 117 Q1 FY24 Vs Q4 FY23 105 6% revenue growth driven through volume +11% offset by price weakening @ 4% and sales mix 71 Adjusted EBITDA margins increased by 1.9% to 15.4% 8,
Slide 4: Consolidated Financial highlights – Q1 FY24
Consolidated Financial highlights –Q1 FY24 Upward Revenue and EBITDA trends with M&A Total Revenue Adjusted* EBITDA Adjusted* EBITDA margin Cashflow from operations ₹9,306m, ₹1,425m, €104m €16m 15.4% ₹1,333m, 54% 19% €15m Debt to Adjusted EBITDA Capex Debt Adjusted Earnings per share** ₹184m, ₹5,003
Slide 5: Revenue Bridge
Revenue Bridge Growth via volumes offset by price softening due to mix change ₹ mn Consolidated : Q-o-Q €97.4m €10.6m -€4.7m €103.3m +6% 9,280 953 -421 6,155 -4% @ 8,748 +11% @ 117kt, ₹ 79k/t organic growth @ 7% 579 2,546 Q4 FY23 Volume Price Q1 FY24 Consolidated : Y-o-Y €67.2m €44.0m -€7.7m €103.3m
Slide 6: M&A Progress
M&A Progress Upward Revenue* and EBITDA trends with M&A +18% Revenue (₹ m) M&A Revenue : In Q1 FY 24, M&A contributed 3,125 33% to consolidated revenue and +18% Q-o-Q 2,655 2,334 2,546 ‒ RHIMIR Revenue : +9% 321 579 8,748 9,280 ‒ JSP Revenue : +20% 6,020 6,093 6,155 M&A EBITDA : +2.3% to 13.3% i
Slide 7: EBITDA Bridge
EBITDA Bridge Higher volumes and lower material cost impacted by low fixed cost absorption ₹ mn Consolidated Q-o-Q 535 358 1,356 69 1,425 1,175 -291 Volume growth @ -421 Slight weakening Lower cost 11%, underlying of realization/t and mix effect organic growth @ 7% @4% €13.1m €4.0m -€4.7m €6.0m €3.6
Slide 8: Consolidated Profit and Loss Snapshot
Consolidated Profit and Loss Snapshot Q1 FY24 Vs Q4 FY23 Adjusted EBITDA (%) increased by 1.9% to 15.4% driven through lower material cost @ 2.9% Finance charges decreased by 1% with issue of equity through QIP and repayment of acquisition loans Q1 FY24 Vs Q1 FY23 Adjusted EBITDA (%) decreased
Slide 9: Debt including short term
Debt including short term Comfortable debt position following successful QIP paying majority acquisition debt ₹ mn €6.7m €6.6m €166.1m -€83.7m -€11.3m -€16.0m €0.6m €55.7m 14,927 Acquisition loan repaid Hi-tech : ₹ 4,008m DOCL : ₹ 3,514m -7,522 -1,014 50 5,003 -1,438 Sanctioned by RHI Magnesita
Slide 10: Utilisation of QIP Proceeds
Utilisation of QIP Proceeds Acquisitions funded by equity raise leading to decline in debt ₹ mn €100.1m €0.3m -€2.6m -€44.6m -€39.1m -€14.2m €0m 9,000 31 -233 Interest earned Repayment of borrowings availed by DOCL, subsidiary of RHIM India -4,008 Proceeds against Issuance of 15.72mn General Corpo
Slide 11: Cashflow
Cashflow Comfortable cash position post acquisitions ₹ mn €35.9m €15.1m -€0.8m -€13.4m -€1.7m -€2.1m €120.2m -€111m -€2.1m -€0m €40.1m 10,801 QIP Fundraise - ₹ 8,798 mn (net of expenses) Preferential Allotment - ₹ Repayment of acquisition 2,000 mn loans - ₹9,850 Balance repayment of short-te
Slide 12: Working Capital
Working Capital Continuous focus on cash conversion cycle Inventories (₹ m) Inventory days Working capital (₹ m) 110 124 121 109 105 Cash conversion cycle 9,562 9,956 6,077 7,049 96 €67m €78m €107m €111m 85 87 FY22 H1 FY22 FY 23 Jun-23 Receivables (₹ m)1 Receivables days 94 108 103 11,095 11,146 89
Slide 13: 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
Slide 14: Production (kt)
Production (kt) Focus on continuous improvement and increasing utilization levels 80% Production : +160% from Q1 FY23 to 85kt and +11% from Q4 FY23 64% ‒ RHIM : +15% to 37kt as compared to Q1 & Q4 FY23 61% ‒ JSP : +6%* to 8kt +160% +11% ‒ RHIMIR**: +1% from 38.8kt to 39.4kt 85 77 Capacity Util