Capitaline

Results 27-May-22

Analysis

RHI Magnesita India

Robust demand from user industries

RHI Magnesita India consolidated net sales increased 44.83% to Rs 589.96 crore in Q4FY22 compared to Q4FY21. Operating profit margin has jumped from 16.01% to 23.34%, leading to 111.21% rise in operating profit to Rs 137.71 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 37.02% to 33.60%. Purchase of finished goods cost fell from 27.74% to 25.20%. Employee cost decreased from 7.30% to 5.56%. Other expenses rose from 13.28% to 13.47%.

Other income fell 57.73% to Rs 2.05 crore. PBIDT rose 99.51% to Rs 139.76 crore.

PBDT rose 112.52% to Rs 140.01 crore. Provision for depreciation rose 18.14% to Rs 9.25 crore.

Profit before tax grew 125.25% to Rs 130.76 crore. Provision for tax was expense of Rs 30.92 crore, compared to Rs 15.51 crore. Effective tax rate was 23.65% compared to 26.72%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 134.70% to Rs 99.84 crore.

Equity capital increased from Rs 12.01 crore as of 31 March 2021 to Rs 16.10 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 70.19% as of 31 March 2022 ,compared to 66.49% as of 31 March 2021.

Commenting on the results, Parmod Sagar – MD & CEO of RHI Magnesita India said, “The strong results of for the year stands testimony to our commitment towards driving value to our stakeholders through the amalgamation of our three legal entities. We have been able to operate strongly as one integrated entity in the market. The demand from the user industries like steel was robust through the most part of the year. This we could capitalize to lead to volume growth. Also, we have been able to partly pass on the increased freight cost to the customer leading to more genuine price realization.”

Full year results analysis

Net sales (including other operating income) of RHI Magnesita India has increased 45.59% to Rs 1995.14 crore.

Operating profit margin has jumped from 15.22% to 19.24%, leading to 84.06% rise in operating profit to Rs 383.83 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 34.53% to 33.83%. Purchase of finished goods cost fell from 29.57% to 28.31%. Employee cost decreased from 7.36% to 5.83%. Other expenses fell from 14.00% to 13.90%.

Other income fell 21.59% to Rs 9.66 crore. PBIDT rose 78.17% to Rs 393.49 crore. Provision for interest fell 66.36% to Rs 2.18 crore. Loan funds rose to Rs 64.71 crore as of 31 March 2022 from Rs 62.39 crore as of 31 March 2021. Inventories rose to Rs 608.04 crore as of 31 March 2022 from Rs 353.09 crore as of 31 March 2021. Sundry debtors were higher at Rs 489.02 crore as of 31 March 2022 compared to Rs 327.71 crore as of 31 March 2021. Cash and bank balance declined from Rs 160.24 crore as of 31 March 2021 to Rs 78.09 crore as of 31 March 2022.

PBDT rose 82.54% to Rs 391.31 crore. Provision for depreciation rose 13.56% to Rs 33.83 crore. Fixed assets increased to Rs 310.70 crore as of 31 March 2022 from Rs 285.74 crore as of 31 March 2021. Intangible assets increased from Rs 3.66 crore to Rs 5.63 crore.

Profit before tax grew 93.67% to Rs 357.48 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 88.48 crore, compared to Rs 47.96 crore. Effective tax rate was 24.75% compared to 25.98%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 96.90% to Rs 269.00 crore.

Equity capital increased from Rs 12.01 crore as of 31 March 2021 to Rs 16.10 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 70.19% as of 31 March 2022 ,compared to 66.49% as of 31 March 2021 .

The scrip trades at Rs 552

RHI Magnestia: Consolidated Results
Particulars	2203 (03)	2103 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	589.96	407.34	45	1,995.14	1,370.38	46
OPM (%)	23.3	16.0		19.2	15.2
OP	137.71	65.20	111	383.83	208.53	84
Other Inc.	2.05	4.85	-58	9.66	12.32	-22
PBIDT	139.76	70.05	100	393.49	220.85	78
Interest	-0.25	4.17	-106	2.18	6.48	-66
PBDT	140.01	65.88	113	391.31	214.37	83
Depreciation	9.25	7.83	18	33.83	29.79	14
PBT before EO	130.76	58.05	125	357.48	184.58	94
EO Income	0.00	0.00	-	0	0	-
PBT after EO	130.76	58.05	125	357.48	184.58	94
Taxation	30.92	15.51	99	88.48	47.96	84
PAT	99.84	42.54	135	269.00	136.62	97
EPS (Rs)*	#	#		16.7	8.5
Notes
* EPS is on current equity of Rs 16.1 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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