Rain Industries reports consolidated loss at Rs97 crore in Q4CY21; Stock hits lower circuit

28 Feb 2022 , 09:30 AM

Rain Industries Limited reported a consolidated loss of Rs97 crore for the fourth quarter ended December 2021 against the profit of Rs307 crore in the year-ago period, as there was an abnormal fall in net realizable value of inventories after a change in the macro-economic conditions like the effect of COVID-19 and fall in crude oil prices.

However, revenue grew sharply by 52% yoy to Rs4,026 crore in Q4CY21 compared to Rs2,640 crore in Q4CY20. Adjusted EBITDA was Rs541 crore and adjusted Net Profit After Tax was Rs94 crore and adjusted EPS was Rs2.81.

During CY21, revenue from operations was Rs14,526.8 crore and adjusted EBITDA was Rs2,517.4 crore. Adjusted Net Profit After Tax was Rs756 crore and adjusted EPS was Rs22.48. Profit After Tax grew to Rs580.1 crore in CY21 from Rs532.1 crore in CY20.

At around 9.32 am, each Rain Industries Ltd stock was trading at Rs179.75 down by Rs19.95 or 10% (lower circuit) from its previous closing of Rs199.70 on the BSE.

Q4FY21 performance

• Carbon sales volumes during Q4CY21 were 630 thousand metric tonnes, a decrease of 1.7% as compared to 641 thousand metric tonnes in Q4CY20. Further, the average blended realisation increased by ~74.0% driven by higher demand and market quotations across all regions. There was a depreciation of EURO against Indian Rupee by ~2.6% and an appreciation of USD against Indian Rupee by ~1.6%. Overall, due to the aforesaid reasons, revenue from Carbon segment increased by ~71.0% in Q4CY21, as compared to Q4CY20.
• Advanced Materials sales volumes during Q4CY21 were 85 thousand metric tonnes, a decrease of 14.1% as compared to 99 thousand metric tonnes in Q4CY20. The decrease in volumes was primarily related to the sale of the superplasticizers business and planned maintenance during the quarter. During Q4CY21, the average blended realisation increased by ~39.7% primarily due to changes in the oil-related prices and a change in the product mix and customer mix offset by a depreciation of EURO against Indian Rupee by ~2.6%. Due to the aforesaid reasons, revenue from Advanced Materials segment increased by ~19.9% during Q4CY21, as compared to Q4CY20.
• Cement revenue increased by 9.8% during Q4CY21, as compared to Q4CY20 due to an increase in volumes by 3.6% and increase in realisations by 6.1%.
• During Q4CY21, Adjusted EBITDA was Rs5,410 million, an increase of Rs604 million as compared to Adjusted EBITDA of Rs4,806 million achieved during Q4CY20.
• Carbon segment Adjusted EBITDA increased by Rs2,429 million as compared to Q4CY20 due to improved realisations offset by depreciation of EURO against Indian Rupee and increase in energy costs.
• Advanced Materials segment Adjusted EBITDA decreased by Rs1,726 million due to increase in energy costs and incremental operating costs in HHCR plant for replacing certain equipment to make process improvements, coupled with divestment of superplasticizers business and depreciation of EURO against Indian Rupee offset by improved realisations.
• Cement segment Adjusted EBITDA decreased by Rs99 million due to higher operating costs offset by increased volumes and realisations.