RHI Magnesita India slumped 7.89% to Rs 690.65 after the company reported 23% fall in consolidated net profit to Rs 59 crore in Q3 FY23 from Rs 76 crore in Q3 FY22.
On the BSE, over 1.06 lakh shares of the company had changed hands in the counter as against an average trading volume of 0.14 lakh shares in the past two weeks.
The Q3 FY 2022-23 income stood at Rs 649 crore, as compared to 547 crores during the Q3 FY 2021-22, registering a 19% growth in income.
EBITDA declined by 11% to Rs 97 crore during the period under review as against Rs 109 crore recorded in the same period last year, leading to a fall of 5.1% in EBITDA margins. The deterioration in EBITDA was due to higher cost of trading goods and foreign exchange fluctuations.
Parmod Sagar, MD & CEO of RHI Magnesita India, said, The demand situation continued to remain positive through the nine months of the financial year. We have been able to respond well to this with our efficient production and supply capabilities, ensuring that we maintain our growth trajectory.
Also Read
However, there has been pressure on the margins due to foreign exchange fluctuations and further increase in the cost of the traded goods arising out of the energy cost hikes in Europe as a fall out of the war.
The company's board has approved the raising further capital and to issue and allot additional equity shares for an aggregate amount not exceeding Rs 1,500 crore.
"In last two months, we completed the acquisition of two leading refractory makers in India - Dalmia OCL and refractory business of Hi-Tech Chemicals. This has enlarged our local production capacity to more than 5,00,000 tons per annum.
All our key strategic initiatives to support the integration of the two businesses and realization of synergies to drive future growth and further profitability improvement are now fully on track, the company's MD added.
RHI Magnesita India is the leading global supplier of high-grade refractory products, systems and solutions which are critical for high-temperature processes exceeding 1,200C in a wide range of industries, including steel, cement, non-ferrous metals and glass. The company serves customers in India and more than 75 countries.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
