Rain Industries Limited · NSE:RAIN
Rain Industries — Q3 2023 Earnings Presentation
19 slides from Rain Industries's earnings presentation, Nov 7, 2023
Slide 1: Rain Industries Limited - Earnings Presentation Cover Letter
RAIN INDUSTRIES LIMITED RIL/SEs/2023 November 7, 2023 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
Slide 2: Earnings Presentation – Q3 CY23
RAIN INDUSTRIES LIMITED Earnings Presentation – Q3 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 for Third Quarter - 2023
Key Highlights for Third Quarter - 2023 • Revenue from Operations was ₹41.60 billion and Adjusted EBITDA was ₹3.76 billion • Adjusted Net Loss After Tax was ₹(0.57) billion and Adjusted Loss Per Share was ₹(1.69) • Margin contraction in Carbon segment due to the time-lag between the decrease in sale
Slide 5: Safety: Quest-for-Zero
Safety: Quest-for-Zero • Life saving rules • SH&E management walkthrough 0 • High focus on contractor work 11 • Safety award programs • OSHA and site-specific hazards awareness trainings 147 Behavior Safety – Hazards 1,102 presented by employee behavior Safe Workplace Process safety – Hazards presen
Slide 6: Aluminum Market Update
Aluminum Market Update Not to Scale Primary Aluminium Production Growth in Thousand Tonnes LME AL Inventory (Million MT) vis-à-vis LME AL Quote (000 US$ per MT) Inventory LME Quote LME QUOTE (000 US$ per MT) 2 4.00 3.50 1.5 3.00 INVENTORY (Million MT) 2.50 1 2.00 1.50 0.5 1.00 0.50 0 0.00 • World Pr
Slide 7: Other key commodities and European Natural Gas Prices
Other key commodities and European Natural Gas Prices Not to Scale 1,473 1,135 984 972 996 984 972 899 803 Increase in fuel oil 791 706 679 698 700 over last two quarters 626 675 592 552 700 negatively impacting 647 479 529 568 raw material prices 468 445 415 420 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 D
Slide 8: Revenue by End-Industry – 9M 2023
Revenue by End-Industry – 9M 2023 Others 18% Energy generation 1% Titanium dioxide 3% • Flexible portfolio of downstream Coatings 3% products to a diverse and Wood preservation growing set of attractive end 3% Specialty markets chemicals 4% Carbon black Aluminium 7% 47% Graphite 6% Construction 8% 7
Slide 9: Consolidated Revenue and EBITDA Q3-2023
Consolidated Revenue and EBITDA Q3-2023 (₹ in Billions) Revenue (excluding other operating income) Adjusted EBITDA Note: Charts not to scale 8
Slide 10: Carbon: Revenue and EBITDA
Carbon: Revenue and EBITDA Q3 CY23 Q3 CY22 • Revenue in Q3 – CY23 decrease driven 27.13 by 9M CY23 9M CY22 1,813 1,731 112.29 o Lower prices driven by market quotations globally 103.64 o Lower volumes due to lower 20.22 throughputs • Margins impacted due to delay in cost resets of raw-materials in l
Slide 11: Advanced Materials: Revenue and EBITDA
Advanced Materials: Revenue and EBITDA Q3 CY23 Q3 CY22 • Revenue in Q3 - CY23 decrease driven 9M CY23 9M CY22 by 254 31.43 o Lower volumes on account of closure of the aromatic chemicals business 2.57 and temporary shutdown of plants in current quarter 192 25.12 2.06 o Lower average prices driven by
Slide 12: Cement: Revenue and EBITDA
Cement: Revenue and EBITDA Q3 CY23 Q3 CY22 • Revenue in Q3 - CY23 decrease 9M CY23 9M CY22 driven by o Decrease in realisations 2,342 2,317 11.24 10.97 0.95 • Margins improved due to o Lower fuel costs; augmented by lower power costs from captive solar power plants 0.53 749 752 3.65 3.46 0.19 0.09 V
Slide 13: Update on Long term debt restructure
Update on Long term debt restructure 10 YR Treasury 3M EURIBOR 12M LIBOR • Mid-August 2023, the Group refinanced its existing 7.00% Senior Secured Notes due in April 2025 (“2025 6.00% Notes”) by issuing US$450.0 million Senior Secured Notes due in September 2029 (“2029 Notes”). 5.00% • The Group als
Slide 14: Debt Summary
Debt Summary US$ in Millions Sep 2023 Dec 2022 Cash Inflows / Outflows during 9M 2023 USD-denominated Senior Secured Notes • Operating cash flows includes net working capital 50 530 (due in April 2025) inflows of ₹15.40 billion (compared to outflows of USD-denominated Senior Secured Notes 450 - ₹15.
Slide 15: Thank You
Thank You RIO
Slide 16: Appendix
Appendix
Slide 17: Summary of Consolidated Income Statement
Summary of Consolidated Income Statement ₹ in Millions Particulars Q3 2023 Q2 2023 Q3 2022 9M 2023 9M 2022 CY 2022 Net Revenue 41,431 46,206 55,593 139,730 154,951 209,063 Other Operating Income 172 65 178 679 592 1,048 Revenue from Operations 41,603 46,271 55,771 140,409 155,543 210,111 Reported EB
Slide 18: Reconciliation of EBITDA and PAT
Reconciliation of EBITDA and PAT ₹ in Millions Particulars Q3-CY23 9M-CY23 EBITDA PAT EBITDA PAT A. Reported 3,827 (901) 15,696 1,809 B. Adjustments/Exceptional items: • Inventory adjustments 628 628 2,331 2,331 • Expenses towards strategic projects and other non-recurring (65) (65) 206 206 items •
Slide 19: 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