Rain Industries Ltd's Q3CY18 consolidated net profit declines 28.9% yoy to Rs174.80cr : Misses Estimates

The company’s consolidated revenue stood at Rs3,492.20cr, up 14.47% yoy.

Nov 15, 2018 08:11 IST India Infoline Research Team

Rain Industries Ltd Q3CY18

Consolidated Results Q3CY18: (Rs. in cr)

Q3CY18 YoY (%)
Revenue 3,492.20 14.5
Adj.EBITDA 561.50 [16.7]
EBITDA Margin (%) 16.1 [601]
Net Profit  174.80 [28.9]
***EBITDA margin change is bps

Rain Industries Ltd reported Q3CY18 results missing the estimates. Revenue grew by 14.5% yoy to Rs3,492.2cr against Rs3,050.8cr in Q2CY17, missing the estimate of Rs3,837cr. Adj. EBITDA for the quarter declined by 16.7% yoy to Rs561.5cr against Rs673.8cr. EBITDA margin declined by 601bps yoy to 16.1%. Net profit for the quarter declined by 28.9% yoy to Rs174.8cr against Rs245.7cr corresponding quarter last year, missing the estimate of Rs296cr.

• Carbon sales volumes during Q3CY18 were 634,000 metric tonnes, a decrease of ~15.6% compared to 751,000 metric tonnes in Q3CY17.
• Sales volumes decreased in calcined petroleum coke (CPC) by ~21.1% and coal tar pitch (CTP) by ~13.9%, offset by ~1.4% increase in Other Carbon Products.
• The decrease in volumes was largely due to timing of shipments, curtailments of few customers and delays before the calcining industry gained an exemption from the Supreme Court of India two and half months after the GPC import ban was imposed.
• During Q3CY18, the average blended realisation increased by ~35.8% after considering the favorable impact from the appreciation of the US Dollar and the Euro against Indian Rupee by ~8.9% and ~7.9% respectively.
• Advanced Materials sales volumes during Q3CY18 were 134,000 metric tonnes, an increase of ~2.3% as compared to 131,000 metric tonnes in Q3CY17.
• Cement sales volumes increased by ~6.1% yoy during Q3CY18 and it is offset by the decrease in realisations by ~5.6%.

Technical View:

Rain Industries Ltd ended at Rs. 168.85, down by 10.2 points or 5.7% from its previous closing of Rs. 179.05 on the BSE.
The scrip opened at Rs. 180.80 and touched a high and low of Rs. 184 and Rs. 165 respectively. A total of 17,45,160 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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