The shares of the leading global supplier of high-grade refractory products, systems, and solutions surged 13% on Friday, hitting an intraday high of ₹668 per share, following the company’s turnaround from a net loss in the previous quarter to a net profit of ₹73 crores in the June quarter.
At 11:45 a.m., RHI Magnesita India Ltd shares were trading at ₹663.85 per share, up 12.2 percent from the previous close price on the exchange. The company has a market capitalization of ₹13,642 crore.
What Happened:
RHI Magnesita India Ltd’s exchange filings disclosed a strong financial performance for Q1 FY25, reporting a consolidated net profit of ₹73 crores, marking a 55% year-over-year growth. The company’s total revenue for the quarter stood at ₹879 crores, reflecting a 5.2% decline compared to the same period last year.
Quarter-on-quarter, the company rebounded from a net loss of ₹258 crores in Q4 FY24 to a net profit of ₹73 crores in Q1 FY25, despite a 6.7% drop in revenue. Additionally, the company achieved a 16% increase in EBITDA, with ₹878 crores recorded, down from ₹928 crores in the corresponding quarter of the previous financial year.
About the company:
RHI Magnesita India Ltd. stands as a global leader in the manufacturing and supply of high-grade refractory products, systems, and solutions. These products are essential for high-temperature processes exceeding 1,200°C and are utilized across a variety of industries, including steel, cement, non-ferrous metals, and glass.
The company’s offerings include Magnesia and Alumina-based bricks and mixes tailored for large industrial customers. Additionally, they provide specialty refractory products such as Isostatic products and Slide Gates, designed to meet specific industry needs.
As of June 2024, Foreign Institutional Investors (FIIs) have incrementally increased their stake in the company to 4.74%, up from 3.78% in March 2024. Meanwhile, promoters hold a 56.07% stake, and retail investors possess 26.40% of the stake and over the past 12 months, the share has gained 4% in the last 12 months.
RHI Magnesita management aims to double the production capacity and revenue by FY 2025-26 as compared to 2020-21 through organic and inorganic.
Written by Omkar Chitnis
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