Rain Industries reports net loss of ₹146 crore, operating revenue falls 30%

Revenue from operations fell 30.14% YoY to ₹3,670.2 crore during the quarter. The decline in revenue was attributed to lower realisations across all key products due to a fall in market quotations.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 35% YoY to ₹346.6 crore. The adjusted EBITDA margin fell to 8.9% during the quarter as compared to 13% in the same period of the previous fiscal.

The firm’s finance costs stood at ₹235 crore during the quarter as compared to ₹163 crore in the same period a year ago. The increase was primarily on account of increased interest rates due to refinancing of long term debt, market rate increases and appreciation of the dollar and the Euro against the Rupee offset partially due to lower working capital borrowings.

During the quarter, carbon sales volumes stood at 511 thousand metric tonnes, marking an 18.4% decrease compared to the same period a year ago. This decline in volumes was primarily due to reduced volumes from the calcination business resulting from de-stocking by Asian smelters.

On the other hand, Advanced Materials’ sales volumes stood at 69 thousand metric tonnes, showing a 13.1% increase on a year-on-year (YoY) basis. This increase was primarily driven by the Red Sea crisis impacting Asian supplies, the revamp of HHCR plant, and the availability of raw materials compared to earlier quarters.

Cement revenue decreased by 2.7%, primarily due to a 5% decrease in realisations that were offset by a 2.4% increase in volumes.

Rain Industries is an integrated producer of carbon, cement, and advanced material products. The company has eight manufacturing facilities in seven countries. Shares of the company have gained over 2% since the beginning of the year. The stock has risen nearly 5% in the last one year.