Rain Industries Limited · NSE:RAIN
Rain Industries — Q2 CY18 Earnings Presentation
17 slides from Rain Industries's earnings presentation, September 2018
Slide 1: Rain Industries Limited Earnings Presentation – Q2 CY18
RAIN INDUSTRIES LIMITED Earnings Presentation – Q2 CY18 Investor Relations Contact: RAIN is a leading vertically integrated global producer of a diversified portfolio of products that are essential raw materials for staples of everyday life. We operate in three business segments: Carbon, Cement and
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including our statements addressing our expectations for segment volumes an
Slide 3: Second Quarter Summary
Second Quarter Summary Financial Highlights Revenue EBITDA Net Profit EPS ₹ 37.7 billion ₹ 6.9 billion ₹ 2.9 billion ₹ 8.8 Business Highlights Best safety performance Higher sales volumes Turbulent market due to in RAIN history and realizations trade war on import tariff 3
Slide 4: Key Market Factors
Key Market Factors Not to scale Aluminum: Production and Demand (Million MT) Aluminum: Inventory (Million MT) vis-à-vis LME (000 US$ per MT) 3.0 2.5 74.1 74.2 76.0 76.5 2.5 69.5 69.5 72.3 72.0 2.0 63.5 63.7 65.5 66.7 59.0 60.1 2.0 Inventory 1.5 LME 1.5 1.0 1.0 0.5 0.5 2016A 2017A 2018F 2019F 2020F 2
Slide 5: Market Factors
Market Factors Primary Aluminum Production Growth H1 CY18 vs H1 CY17 US Primary Production IN CY17 in Thousand Tons 12.7% Others China Middle East Asia Ex. China 3.9% -1.2% -1.4% Industry Updates: • LME price realigned to bearish pattern after reversal of rally unleashed by US sanctions. Higher prem
Slide 6: MARPOL Update
MARPOL Update MARPOL 2020 • New MARPOL (International Convention for the Prevention of Pollution from Ships) limits on sulfur content in marine fuels starting in 2020. This additional crude demand would contribute to crude market tightening in 2020-21. • In 2020, global sulfur limits for marine bunk
Slide 7: Ongoing Capital Expansion
Ongoing Capital Expansion Vertical shaft technology-based calcination plant, Vishakhapatnam, Andhra Pradesh, India • All of the requisite permissions are obtained, and detailed engineering, land acquisition, site clearance work and contractor selection is done. Foundation work is underway. The proje
Slide 8: Consolidated Performance – Q2 CY18
Consolidated Performance – Q2 CY18 (₹ in Billions) Revenue (excluding other operating income) Adjusted EBITDA Highlights in Q2 CY18 • Consolidated revenue increased due to the increase in sales volumes and realizations including the favorable impact from depreciation of Indian Rupee against the Euro
Slide 9: Carbon Business Performance – Q2 CY18
Carbon Business Performance – Q2 CY18 (₹ in Billions) *Includes Energy Revenue Sales Volumes (tons in thousands) Revenue (excluding other operating income) Highlights in Q2 CY18 • Carbon revenue increased due to increased volumes of CPC and OCP in addition to the improved realizations across all car
Slide 10: Advanced Materials Business Performance – Q2 CY18
Advanced Materials Business Performance – Q2 CY18 (₹ in Billions) Sales Volumes (tons in thousands) Revenue (excluding other operating income) Highlights in Q2 CY18 • Majority portion of increase in revenue led by appreciation of the Euro and US Dollar against Indian Rupee. The increased quotations
Slide 11: Cement Performance – Q2 CY18
Cement Performance – Q2 CY18 (₹ in Billions) Sales Volumes (tons in thousands) Revenue (excluding other operating income) Highlights in Q2 CY18 • Revenue from Cement business decreased by approximately 16.4% mainly due to decrease in realisations by approximately 18.8% in Q2 CY18 compared to Q2 CY17
Slide 12: Consolidated Debt Position
Consolidated Debt Position Highlights in Q2 CY18 US$ in Millions Jun.’18 Dec.’17 • Cash balance of $101 million and unutilised working Senior Secured Notes capital facilities of $ 150 million. - 8.25% USD Bonds (due in 2021) - 247 • Although net working capital increased by $ 33 million, - 8.50% Eur
Slide 13: The Raw Materials We Produce Make Products You Rely On Possible
The Raw Materials We Produce Make Products You Rely On Possible Today’s automobiles are highly reliant on our Carbon and Advanced Materials-based products. Calcined petroleum coke CARBORES® PETRORES® resins NOVARES® resins for anodes used in electrolytic for refractory for lithium-ion for hot melt a
Slide 14: RAIN – Key Business Strengths
RAIN – Key Business Strengths • Three business verticals (Carbon, Cement and Advanced Materials) • Global presence with 2.1 million tons p.a. calcination capacity, 1.0 million tons p.a. CPC blending capacity, 1.35 million tons p.a. coal tar distillation capacity, 0.65 million tons advanced materials
Slide 15: Appendix
Appendix
Slide 16: Summary of Statement of Operations
Summary of Statement of Operations ₹ in Millions Particulars Q2 2018 Q1 CY18 Q2 2017 CY 2017 Net Revenue 37,706 32,911 27,071 113,919 Other Operating Income 327 151 95 552 Revenue from Operations 38,033 33,062 27,166 114,471 Adjusted EBITDA 6,852 6,621 4,678 22,702 Adjusted EBITDA Margin 18.0% 20.0%
Slide 17: Thank You
Thank You R’ iL