Slide 1: Rain Industries Limited – Earnings Presentation Filing Letter
RAIN INDUSTRIES LIMITED RIL/SEs/2024 August 6, 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 – 400 0
Slide 2: Earnings Presentation – Q2 CY24
RAIN INDUSTRIES LIMITED Earnings Presentation – Q2 CY24 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 – Q2 2024
Key Highlights – Q2 2024 • Revenue from Operations was ₹40.94 billion • Adjusted EBITDA was ₹4.90 billion • Adjusted Net Profit After Tax was ₹0.07 billion • Adjusted Earnings per share was ₹0.21 • Capital expenditure of US$ 35 million for the six-months period ended June 30, 2024 • Liquidity of US$
Slide 5: Aluminium Market Update
Aluminium Market Update Primary Aluminium Production Growth in Thousand Tonnes Not to Scale 28,754 29,121 29,598 30,862 40,145 41,194 41,908 42,442 2022 2023 China ROW 2024 (F) 2025 (F) LME AL Inventory (Million MT) vis-à-vis LME AL Quote (000 US$ per MT) Inventory LME Quote LME QUOTE (000 US$ per M
Slide 6: Price Trend of Key Products and European Natural Gas
Price Trend of Key Products and European Natural Gas Not to Scale 1,338 1,473 1,239 984 972 899 791 864 Prices have fallen compared 803 706 675 700 709 663 to Q1 2024 however higher 626 635 592 552 than Q2 2023 647 529 568 455 498 480 415 420 445 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-
Slide 7: Revenue by End Industry – LTM June 2024
Revenue by End Industry – LTM June 2024 Markets We Serve TiO2 Petroleum Rubber 2% Energy 3% 3% 2% Coatings 3% Others 16% Wood preservation 5% Specialty chemicals 2% Aluminium Automotive Carbon black 9% Graphite 4% Chemicals and Advanced Graphite Materials Aluminium Construction 42% 9% Aluminium cont
Slide 8: Consolidated Revenue and EBITDA Q2-2024
Consolidated Revenue and EBITDA Q2-2024 (₹ in Billions) Revenue (excluding other operating income) Adjusted EBITDA Note: Charts not to scale 7
Slide 9: Carbon: Revenue and EBITDA
Carbon: Revenue and EBITDA Q2 CY24 Q1 CY24 Q2 CY23 CY23 Q2 2024 Vs Q2 2023 132.97 • Revenue decrease driven by 17.57 2,315 o Reduced average realisations across all major products due to declining market quotations and raw material prices o Higher volumes from calcination business and advancement of
Slide 10: Advanced Materials: Revenue and EBITDA
Advanced Materials: Revenue and EBITDA Q2 2024 Vs Q2 2023 Q2 CY24 Q1 CY24 1.51 Q2 CY23 CY23 • Revenue increase driven by 254 o increase in volumes driven by 32.32 seasonal sales and HHCR sales due to Red Sea crisis impacting Asian supplies 1.06 1.05 o Offset by lower average prices driven by fall in
Slide 11: Cement: Revenue and EBITDA
Cement: Revenue and EBITDA Q2 CY24 Q1 CY24 Q2 2024 Vs Q2 2023 Q2 CY23 CY23 3,238 • Revenue decrease driven by 15.23 o Fall in realisations o Lower volumes • EBITDA declined due to o Lower realisations 1.06 o Higher operating costs 806 751 806 3.67 3.74 3.21 0.17 0.10 0.04 Volumes (MT 000) Revenue Ad
Slide 12: Debt Summary
Debt Summary US$ in Millions Jun 2024 Dec 2023 Cash Inflows / Outflows during H1 2024 USD-denominated Senior Secured Notes 50 50 • Operating cash flows includes net working capital (due in April 2025) release of ₹1.43 billion (compared to inflows USD-denominated Senior Secured Notes of ₹6.87 billion
Slide 13: Outlook
Outlook • Margins pressure to continue in second half of 2024; likely to improve from first half of 2025 • CAQM order granting relief from pet coke import restrictions partially implemented with the DTA Plant receiving a higher allocation compared to prior years. • Received permissions for importati
Slide 14: Thank You
Thank You RIO
Slide 15: Appendix
Appendix
Slide 16: Summary of Consolidated Statement of Profit and Loss
Summary of Consolidated Statement of Profit and Loss ₹ in Millions Particulars Q2 2024 Q1 2024 Q2 2023 CY 2023 Net Revenue 40,558 36,570 46,206 180,518 Other Operating Income 384 132 65 897 Revenue from Operations 40,942 36,702 46,271 181,415 Reported EBITDA 4,011 3,466 6,499 17,374 Adjusted EBITDA
Slide 17: Reconciliation of EBITDA and PAT
Reconciliation of EBITDA and PAT ₹ in Millions Particulars Q2-2024 EBITDA PAT A. Reported 4,011 (779) B. Adjustments/Exceptional items: • Provision for severance payments in Germany 716 716 • Expenses towards non-recurring items 309 309 • Foreign exchange loss/(gain) on inter-company debt note (133)
Slide 18: 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, 0.4 million tonnes p.a. advanced