Rain Industries slumps after weak Q4 outcome

Rain Industries tumbled 10.8% to Rs 178.10 on BSE after the company posted a consolidated net loss of Rs 97 crore in Q4 December 2021 as compared to a net profit of Rs 307 crore registered in Q4 December 2020.

On the BSE, 6.99 lakh shares were traded in the counter so far compared with average daily volumes of 2.91 lakh shares in the past two weeks.

The company's net sales jumped 52.5% to Rs 4,026 crore in Q4 December 2021 from Rs 2,640 crore posted in Q4 December 2020. Adjusted EBITDA for Q4 December 2021 rose nearly 13% to Rs 541 crore. EBITDA margin slipped to 13.4% in Q4 December 2021 from 18.2% in Q4 December 2020.

Profit before tax sharply declined by 49.8% to Rs 223.46 crore in Q4 December 2021 over Q4 December 2020.

The company reported finance costs of Rs 119 crore during Q4 December 2021, as compared to finance costs of Rs 124 crore during Q4 December 2020. The decrease in finance costs was due to depreciation of EURO against Indian Rupee by 2.6% coupled with lower utilisation of working capital borrowings compared to last-year quarter.

On the operational front, sales of calcined petroleum coke fell 6.9% year on year to Rs 367,000 MT in Q4 December 2021 over Q4 December 2020. Volume of Coal Tar Pitch grew by 18% to 131,000 MT in Q4 December 2021 over Q4 December 2020. Meanwhile, sales volume of other carbon products declined 2.9% to 132,000 MT in Q4 December 2021.

For the year ended 2021, adjusted net profit after tax grew by 42% year on year to Rs 756 crore on a 38.8% year on year rise in revenue from operations to Rs 14,526.8 crore.

Rain Industries is a vertically integrated global producer of a diversified portfolio of products that are essential raw materials. It operates in three business segments: Carbon, Advanced Materials and Cement.

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