RAIN INDUSTRIES
INVESTOR PRESENTATION
AUG 2018
· Rain Industries Limited (RAIN) is a leading vertically
integrated producer of carbon, cement and chemical products.
· RAIN has manufacturing facilities in eight countries
across three continents.
· RAIN’s subsidiary companies – Rain Carbon Inc. (RCI)
and Rain Cements Limited (RCL) .
· RCI is a global leader and innovator in the production
of crucial raw materials for aluminum (including calcined petroleum coke (CPC)
and coal tar pitch (CTP)), graphite, carbon black, refractory, titanium dioxide
and a host of other products.
· RCI has a production capacity of 2.1 million tons per
year of calcined petroleum coke CPC and a total distillation capacity of 1.5
million tons per year for CTP.
· RAIN acquired RÜTGERS during 2013, and integrated the
business into the RCI subsidiary. RÜTGERS is Europe’s leading manufacturer of
chemical raw materials derived from coal tar, a unique by-product resulting
from the coking of hard coal.
· RCL produces high-quality “Priya Cement”. RCL operates
two cement plants with a combined cement production capacity of 4.0 million
tons per year.
· A highly committed and motivated workforce comprising
of over 2,400 professionals are available.
· KEY BUSINESS
STRENGTHS
· 3 business verticals (Carbon, Cement and Advanced
Materials) Global presence with 2.1 million tons p.a. calcination capacity, 1.0
million tons p.a. CPC blending capacity, 1.35 million tons p.a. coal tar
distillation capacity, 0.65 million tons advanced materials capacity and 4.0
million tons p.a. cement capacity
· Transforming by-products of oil and steel industries
into high-value carbon products
· Long standing relationships with raw material suppliers
and end customers
· Leading R&D function drives continuous innovation
· Diversified geographical footprint with advantaged
freight and logistic network
· Facilities with overall 125 MW co-generated energy
· Refinancing at lower interest rate
· International management team
· Strategy shift from low margin products to favourable
product mix
1.
FINANCILS :
|
RAIN IND
|
Jun '18
|
Mar '18
|
Dec '17
|
Sep '17
|
Jun '17
|
YOY
|
QOQ
|
|
Net Sales
|
3,803.25
|
3,306.20
|
3,144.79
|
3,050.81
|
2,637.12
|
44.22
|
15.03
|
|
Con.Net P/L
|
294.81
|
265.71
|
318.38
|
245.65
|
151.53
|
94.56
|
10.95
|
|
Equity
|
67.27
|
67.27
|
67.27
|
67.27
|
67.27
|
0
|
0
|
|
Diluted EPS
|
8.76
|
7.47
|
9.13
|
7.3
|
4.51
|
94.24
|
17.27
|
|
MP
|
190
|
||||||
|
PE
|
6
|
||||||
|
VOLUME
|
4,00,000
|
||||||
|
FV
|
RS.2
|
||||||
|
1 week
|
2 week
|
1 month
|
3 month
|
6 month
|
9 month
|
1 year
|
|
|
Price
|
205.15
|
208.15
|
193.1
|
238.25
|
381
|
340.2
|
139.4
|
|
Gain / Loss
|
-5.53%
|
-6.89%
|
0.36%
|
-18.66%
|
-49.13%
|
-43.03%
|
39.02%
|
· Consolidated revenue increased due to (i) increase in
sales volumes (ii) realizations & (iii) favorable impact from depreciation
of Indian Rupee against the Euro and the US Dollar.
· Although markets are challenging, margins are being
maintained due to cost optimisation and improved capacity utilisations.
· Adjusted EBITDA increased by 46.5% in Q2 CY18 TO
Rs.6.85 billions from Rs.4.68 billions in Q2 CY 17.
· CARBON BUSINESS
PERFORMANCE – Q2
· Carbon revenue increased due to (i) increased volumes
of CPC and OCP & (ii) improved realizations across all carbon products
& (iii) favorable impact from depreciation of Indian Rupee against the Euro
and US Dollar.
· Adjusted EBITDA from Carbon business in Q2 CY18 is 5.5
billion as against 2.9 billion in Q2 CY17.
· ADVANCED MATERIALS
BUSINESS PERFORMANCE Q2
· Increase in revenue is led by appreciation of Euro and
US Dollar against Indian Rupee.
· Increased quotations from Engineered Products offset
with decreased volumes in Petro Chemical Intermediates.
· Adjusted EBITDA from Advanced Materials business in Q2
CY18 is 1.2 bln as against 1.5 bln in Q2 CY17.
· Performance of Advanced Materials business impacted due
to higher raw material quotations
· CEMENT PERFORMANCE –
Q2 CT 18 : Revenue from Cement
business decreased by 16.4% due to (i) decrease
in realisations by 18.8% in Q2 CY18 compared to Q2 CY17, partly offset with
2.9% increase in volumes.
· Adjusted EBITDA from Cement business in Q2 CY18 is 0.1
billion as against 0.2 billion in Q2 CY17.
· Performance of Cement business impacted due to higher
operating cost and lower cement clinker ratio.
· CONSOLIDATED DEBT :
Net Debt increased from US$999 Mlns in
Dec 17 to $1007 Mlns in June 18
INDUSTRY UPDATE
· LME price realigned to bearish pattern after reversal
of rally unleashed by US sanctions. Higher premiums benefited US smelters.
· ALCOA,USA restarted 2 of its 3 curtailed plotlines .
Century restarted 1.
· Other restarts or ramp-ups of other curtailed
capacities is delayed due to skilled labor availability issues and technical
constraints.
· Disruptions in bauxite mining in Brazil, US sanctions
and levy of tariff on imports by US resulted in lower aluminum production
during Q2.
· Targeting the aluminium supply deficit, Chinese aluminum
producers are lobbying for removal of export tax in China.
· Softer market conditions limited price increase of GPC
and CPC in Q2 and expected to continue in near future.
· To control Pollution, hon’ble supreme court has ordered
ban on import and use of Pet Coke as
fuel on 26 July, 2018.
·
MARPOL 2020
· In 2020, Global sulphur limits for marine bunker fuel
will be lowered from the current 3.5% to 0.5% affecting fuel demand from the
shipping Industry.
· There is uncertainty over the level of compliance from
shipping companies and if they do switch, which alternative fuels they use.
They could continue using high sulphur grades and install scrubbers, which
remove the sulphur from exhaust gases.
· The enactment of MARPOL will put existing quatities and
qualities of calcinable GREEN PETROLEUM COKE(GPC) production at risk of
decreasing quantities
