RHI Magnesita shares jump over 13% after Q4 net loss contracts to ₹258 crore

Shares of the company gained as much as 13.47% to hit an intraday high of ₹755.55 apiece on the NSE a day after the company announced its results for the quarter ended March 31, 2024. RHI Magnesita India shares closed 10.42% higher at ₹735.25 apiece on the NSE.

The refractory products supplier reported a consolidated net loss of ₹257.9 crore for the quarter ending on March 31, 2024, marking an impressive year-on-year (YoY) improvement of 62% from a net loss of ₹678.91 crore in the same period last year.

The company’s revenue from operations witnessed a single-digit growth of 8% on a YoY basis to ₹943.3 crore in the final quarter of the financial year 2024 as compared to ₹874.8 crore in the year-ago period.

On the operational front, RHI Magnesita’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) made a phenomenal uptick of 185% YoY to ₹152.5 crore in Q4FY24, compared to ₹53.5 crore in the year-ago quarter.

The company’s adjusted EBITDA margin also increased in the quarter under review to 17.2% YoY from 13.4% in the corresponding quarter of the previous fiscal year.

For the full financial year 2024, RHI Magnesita reported a 79% reduction in net loss at ₹100.11 crore compared to a net loss of ₹465.65 crore seen in the preceding year.

Its revenue from operations for the full year (FY24), on the other hand, improved 39% to ₹3,781.1 crore from ₹2,726.3 crore in the preceding fiscal.

“Our fourth quarter results underlined again the attractive growth and resilient results of our business. We have excelled by strategically enhancing our operational efficiencies, driving remarkable and sustained growth. The seamless integration of recent acquisitions has unlocked significant synergies, reflected in the impressive rise in profitability,” said the MD and CEO of RHI Magnesita India, Parmod Sagar, in a press release dated May 29.

The company’s board of directors has also recommended a final dividend of ₹2.5 per equity share of face value of ₹1 each for the financial year 2024, subject to approval of its shareholders, which in turn will be paid within five days from the conclusion of the Annual General Meeting (AGM).