Revenue Growth and Operating Performance
RHI Magnesita’s net sales have exhibited robust expansion, rising from ₹747.95 crores in March 2019 to ₹3,674.50 crores by March 2025. This represents nearly a fivefold increase over six years, reflecting the company’s successful scaling and market penetration. The total operating income followed a similar pattern, with a peak of ₹3,781.10 crores in March 2024 before a slight dip in the latest fiscal year.
Operating profit margins, excluding other income, have fluctuated between 13.0% and 19.4% during this period. The margin peaked at 19.41% in March 2022, indicating strong operational efficiency, but moderated to 13.04% by March 2025. This variation suggests the company has faced cost pressures or competitive challenges impacting profitability.
Raw material costs and purchase of finished goods have scaled proportionally with revenue, with raw material expenses increasing from ₹315.20 crores in 2019 to ₹1,516.76 crores in 2025. Employee costs have also risen steadily, reflecting workforce expansion and inflationary effects.
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Profitability and Earnings Trends
The company’s profit after tax (PAT) has experienced notable volatility. After steady growth from ₹89.83 crores in 2019 to ₹269.00 crores in 2022, RHI Magnesita faced significant setbacks in 2023 and 2024, reporting losses of ₹465.65 crores and ₹100.11 crores respectively. However, the fiscal year ending March 2025 saw a recovery with a PAT of ₹202.51 crores.
Earnings per share (EPS) mirrored this pattern, peaking at ₹16.71 in 2022 before plunging into negative territory in the subsequent two years, and rebounding to ₹9.81 in 2025. The PAT margin similarly swung from a high of 13.45% in 2022 to negative margins in 2023 and 2024, before returning to a positive 5.51% in 2025.
Exceptional items heavily influenced the 2023 and 2024 results, with significant negative adjustments impacting profitability. Interest expenses also varied, rising sharply in 2024 before moderating in 2025.
Balance Sheet and Financial Position
RHI Magnesita’s balance sheet has strengthened considerably. Shareholder’s funds surged from ₹805.78 crores in 2021 to nearly ₹4,000 crores by 2025, supported by a substantial increase in reserves. The company’s equity capital also rose, reflecting possible equity infusions or share issuances.
Total liabilities increased in line with business expansion, reaching over ₹5,100 crores in 2025. Long-term borrowings have grown moderately, while short-term borrowings have decreased significantly from a peak in 2023, indicating improved liquidity management.
Net block of fixed assets expanded from ₹237.53 crores in 2021 to ₹2,512.78 crores in 2025, signalling substantial capital investment. Current assets also increased, with inventories and sundry debtors rising in tandem with sales growth.
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Cash Flow and Liquidity Analysis
Cash flow from operating activities has generally improved, rising from ₹173 crores in 2020 to ₹373 crores in 2025. Despite fluctuations in net cash inflow, the company maintained positive cash flow in most years except for a notable outflow in 2024. Investing activities have consistently reflected capital expenditure, with significant outflows in 2023.
Financing activities show a mixed pattern, with large inflows in 2023 likely related to debt or equity raising, followed by outflows in subsequent years as the company managed repayments. Closing cash and cash equivalents stood at ₹96 crores in 2025, up from ₹50 crores the previous year, indicating a modest improvement in liquidity.
Summary of Historical Performance
Overall, RHI Magnesita’s historical performance reveals a company in a phase of rapid growth and transformation. While revenue and asset base have expanded impressively, profitability has been uneven due to exceptional charges and market challenges. The balance sheet shows solid equity growth and manageable debt levels, supported by improving cash flows. Investors should weigh the company’s growth potential against its recent earnings volatility when considering its stock.
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