RHI MAGNESITA INDIA LIMITED — PPTs, 28-05-2025: Investor Presentation

1. Financial Highlights:

RHI Magnesita India reported revenue of ₹3674.5 Cr in FY25, down 2.8% YoY. Profit after tax turned positive at ₹202.5 Cr versus a loss last year. EBITDA margin contracted to 13.7% from 14.7%, impacted by pricing pressures and higher raw material costs (~2% margin hit). Operating cash flow was strong at ₹373 Cr, supporting a 53% reduction in net debt to a 0.3x Net Debt/EBITDA ratio. Capex stood at ₹117.7 Cr focused on capacity expansion and strategic projects. Q4 saw typical seasonal declines with revenue and EBITDA down 9% and 28.9% respectively versus Q3, reflecting cement sector seasonality and project completions.

2. Strategic Initiatives & Growth Drivers:

Growth is driven by expansion in ironmaking and flow control segments, including a new 5 MTPA pellet plant and plans for a second line under LOI. Entry into coke oven maintenance follows acquisition of RESCO, USA. R&D spend rose 40%, fueling product innovation and cost competitiveness via new grades and technology transfer. Over ₹10 Cr of capital is earmarked for capacity enhancement and local manufacturing aligned with “Make in India.”

3. Business Developments:

Acquisitions of Dalmia Refractories (6 plants) and Hi-Tech Chemicals broaden product range and manufacturing scale, aiding new verticals and integration. Integration of Seven Refractories expertise aims to optimize plant operations and offerings. These moves enhance diversification and scale advantages.

4. Market Position & Competitive Advantage:

The company holds ~30% market share with 8 plants and 25+ project sites, supported by skilled workforce and R&D center. A local-for-local approach combined with global technology and parent support enhances cost competitiveness and tailored solutions, especially in high-growth areas like blast furnaces and pellets.

5. Investor Implications:

Strong cash flows and disciplined capital allocation have deleveraged the balance sheet, enabling growth investments. Focus on acquisition integration, innovation, and local manufacturing underpins positive growth potential. Pricing pressures and raw material cost volatility remain risks to watch. Overall, the company is well positioned to benefit from growth in the domestic refractory market with improving margin prospects.