RHI Magnesita India Reports Strong Financial Results for Q1 FY25

RHI Magnesita India, a leading player in the refractories industry, has recently announced its financial results for the quarter ended March 2024. The company has shown a very positive performance, with a significant improvement in its financial score from -1 to 20 in the last three months.

One of the key highlights of the quarter is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 101.7% to Rs 90.57 crore compared to the average PBT of the previous four quarters at Rs 44.91 crore. This indicates a very positive trend in the near term for PBT. Similarly, the Profit After Tax (PAT) has also shown a growth of 95.0% to Rs 67.88 crore, compared to the average PAT of the previous four quarters at Rs 34.81 crore.

The company has also seen a growth in its Net Sales, which has increased by 22.81% year on year to Rs 1,866.23 crore in the half-yearly period. This shows a positive trend in the near term for sales. Additionally, RHI Magnesita has achieved its highest Operating Profit (PBDIT) in the last five quarters at Rs 148.31 crore, indicating a positive trend in the near term for operating profit.

The company’s efficiency has also improved, as seen in the highest Operating Profit Margin of 15.72% in the last five quarters. Moreover, RHI Magnesita has been able to settle its Debtors faster, with the highest Debtors Turnover Ratio of 4.63 times in the last five half-yearly periods.

However, there are some areas that need improvement, as seen in the declining trend of Earnings per Share (EPS) in the last five quarters, with the lowest at Rs -124.89. This indicates a decrease in profitability and lower earnings for shareholders. Additionally, the company’s short-term liquidity has deteriorated, with the lowest Cash and Cash Equivalents of Rs 53.26 crore in the last six half-yearly periods.

Overall, RHI Magnesita India has shown a positive financial performance in the quarter ended March 2024, with some areas that need attention for improvement. The stock call by MarketsMOJO for RHI Magnesita is ‘Sell’.