RAIN Industries Reports Q2 2024: Revenue Down 12.2%, Profit Plummets

On August 06, 2024, Rain Industries Limited released its unaudited financial results for the second quarter, which ended on June 30, 2024.

Financial Highlights for Q2 2024

RAIN’s revenue from operations was ₹40.94 billion, down from ₹46.27 billion in Q2 2023. The adjusted EBITDA stood at ₹4.90 billion, compared to ₹6.75 billion in the same period last year. The adjusted net profit after tax was ₹0.07 billion, significantly lower than the ₹1.91 billion recorded in Q2 2023. Additionally, the adjusted earnings per share dropped to ₹0.21 from ₹5.67 in Q2 2023.

Quarter Ended June 30, 2024, Compared to Quarter Ended June 30, 2023

For the quarter ended June 30, 2024, RAIN reported net revenue of ₹40.56 billion, a decrease of approximately 12.2% compared to ₹46.21 billion in the same quarter of 2023. The adjusted EBITDA for Q2 2024 was ₹4,903 million, down from ₹6,750 million in Q2 2023, a decrease of ₹1,847 million. Finance costs rose to ₹2.45 billion in Q2 2024, up from ₹1.69 billion in Q2 2023, mainly due to increased interest rates from refinancing long-term debt in Q3 2023, along with market rate increases and the appreciation of the US Dollar and Euro against the Indian Rupee.

The adjusted profit after tax for Q2 2024 was ₹0.07 billion, compared to ₹1.91 billion in Q2 2023. The adjusted earnings per share for Q2 2024 was ₹0.21, down from ₹5.67 in Q2 2023.

During the first half of 2024, the company spent US$35 million on maintenance projects across all locations. With its current cash reserves and undrawn working capital loan facilities, the company is well-positioned to fund capital expenditures and meet debt obligations in the medium term. Major debt repayments are scheduled to begin in October 2028.

About RAIN

RAIN is a top global producer of a diverse range of essential raw materials for everyday products. The company operates in three segments: Carbon, Advanced Materials, and Cement. In the carbon segment, RAIN transforms by-products from oil refining and steel production into valuable carbon-based products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.