Rain Industries March quarter net up 68% at Rs 84 crore

Huge forex gain swells profit figure despite 19% fall in revenue

Hyderabad-based Rain Industries Limited reported a 68.42 per cent jump in consolidated net profit at Rs 84.33 crore for the quarter ended March, 2015, on the back of a huge foreign exchange gain. The profit comes despite a fall in revenues.

The company’s net profit stood at Rs 50.07 crore for the corresponding quarter last year.

The numbers indicate a turnaround in financial performance on a sequential basis since the company had incurred a net loss of Rs 199.71 crore in quarter ended December, 2014.

Total income for the quarter under review declined 19 per cent to Rs 2,546.16 crore from Rs 3,143.51 crore in the year ago period. Expenditure too declined 20.63 per cent at Rs 2,304.77 crore from Rs 2,904.16 crore in the year ago period.

Of the three segments of operations, revenues from carbon products as well as chemicals that together constitute a major chunk of the operational income, declined during the quarter while cement rose on the back of a better realisation in the domestic market.

An amount of Rs 45.89 crore by way of foreign exchange gain as compared to a similar gain of Rs 10.36 crore in the corresponding previous quarter added to a steep rise in net profit for the quarter.

“The forex gain in the current quarter is mainly due to the gain on US dollar-denominated receivables from appreciation of US dollar against euro and strengthening of Russian ruble against the US dollar,” the company said in a statement.

For the full year ended December 2014, net profit stood at Rs 88.53 crore on a total operational income of Rs 11,936.99 crore.

Rain, formerly known as Rain Commodities, is a producer of carbon products and speciality chemicals with 16 operating facilities spread across India, Belgium, Canada, Egypt, Germany, the Netherlands and Poland and a new facility, which is a joint venture, is currently under construction in Russia. Rain Industries also has two cement plants in India and markets its products under the brand Priya Cement.