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Rain Industries tumbles 11% on Q4 loss

Rain Industries reported a net loss of Rs 1,118.80 crore for the December quarter, while revenue from operations declined over 24% to Rs 4,101 crore.

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SI Reporter Mumbai

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Rain Industries tumbled over 11 per cent to a low of Rs 183.05 in intra-day trades on the BSE after the company reported net loss for the December quarter.

At 01:10 PM, the stock has recouped some of the day's loss, but was still down 6.5 per cent at Rs 193. The counter saw trades of around 19.57 lakh shares as against the two-week average volume of around 11.11 lakh shares on the BSE.

Meanwhile, the S&P BSE Sensex was down 0.5 per cent (330 points) around 72,800 levels.

According to an exchange filing on Friday after market hours, Rain Industries reported a net loss of Rs 1,118.80 crore for the December quarter. In comparison, the company had posted a net profit of Rs 89.50 crore in the year ago period. The adjusted net loss for the December 2023 quarter stood at Rs 196 crore.

As per the filing, due to increase in Weighted Average Cost of Capital, the company took non-cash Goodwil Impariment charge of Rs 732 crore.

Revenue from operations declined 24.9 per cent to Rs 4,100.60 crore from Rs 5,456.80 crore in the same comparable quarter. Adjusted EBITDA stood at Rs 277.90 crore as against Rs 689.50 crore a year ago.

The company's carbon sales volumes in Q4CY23 decreased by 5.3 per cent to 584,000 metric tonnes (MT) when compared with 617,000 MT in Q4CY22. The decrease in volumes was primarily driven by lower demand and delayed shipments.

During Q4CY23, the average blended realisation decreased by around 26.8 per cent on account of lower market quotations across all regions. There was an appreciation of EURO against Indian Rupee by around 6.8 per cent and an appreciation of USD against Rupee by around 1.3 per cent. Overall, due to the aforesaid reasons, revenue from the Carbon segment decreased by around 30.7 per cent in Q4CY23, as compared to Q4CY22, the release stated.

On the other hand, Advanced Materials sales volumes rose by 10.7 per cent in Q4CY23 to 62,000 MT from 56,000 MT. The increase was primarily driven by timing of maintenance shutdowns.

During Q4CY23, realisations decreased by 15.4 per cent due to fall in commodity prices and change in product mix offset by an appreciation of EURO against Indian Rupee.


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First Published: Feb 26 2024 | 1:28 PM IST

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