Rain Result Second Quarter 2018

Rain Result

rain industries ltd

• Revenue from Operations is ₹ 34.9 billion and Adjusted EBITDA is ₹ 5.6 billion.
• Adjusted Net Profit After Tax is ₹ 2.0 billion and Adjusted Earnings Per Share is ₹ 5.9.
• Strong Cash of ₹ 7.3 billion to fund CAPEX projects and meet debt obligations in the near-term.

Financial Performance Review and Analysis – Q3 CY18 vs Q3 CY17

• Net Revenue of ₹34.7 billion during Q3 CY18, an increase of ~14.3% compared to ₹30.4 billion

 Carbon sales volumes during Q3 CY18 were 634 thousand metric tons, a decrease of ~15.6% compared to 751 thousand metric tons in Q3 CY17. Sales volumes decreased in calcined petroleum coke (CPC) by ~21.1% and coal tar pitch (CTP) by ~13.9% offset by ~1.4% increase in Other Carbon Products. The decrease in volumes was largely due to timing of shipments, curtailments of few customers and delays before the calcining industry gained an exemption from the Hon’ble Supreme Court of India two and half months after the GPC import ban was imposed. The decrease in volumes of CTP was primarily driven by technical issues at customer facilities. During Q3 CY18, the average blended realisation increased by ~35.8% after considering the favorable impact from the appreciation of the US Dollar and the Euro against Indian Rupee by ~8.9% and ~7.9% respectively. Overall, due to the aforesaid reasons, the revenue from Carbon segment increased by ~14.6% in Q3 CY18 as compared to Q3 CY17during Q3 CY17.

 Advanced Materials sales volumes during Q3 CY18 were 134 thousand metric tons, an increase of ~2.3% as compared to 131 thousand metric tons in Q3 CY17. During Q3 CY18, sales volumes in petro chemical intermediates increased by ~37.0%, which is offset by a decrease in sales volumes of engineered products, naphthalene derivates and resins by ~2.9%, 9.1% and ~8.1% respectively as compared to Q3 CY17. During Q3 CY18, the average blended realisation increased by ~14.5% along with the favorable impact from the appreciation of the Euro against the Indian Rupee by ~7.9%. Due to the aforesaid reasons, the revenue from Advanced Materials business increased by ~17.1% during Q3 CY18 as compared to Q3 CY17.

 Cement sales volumes increased by ~6.1% during Q3 CY18 as compared to Q3 CY17 and it is offset by the decrease in realisations by ~5.6%. Due to these reasons, the revenue from Cement business increased by ~0.2%. During Q3 CY18, there is ~12.6% increase in sales volume from Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala, partially offset by ~6.5% lower volumes in Odisha, Maharashtra, Goa and Pondicherry as compared to Q3 CY17.

• During Q3 CY18, Adjusted EBITDA in Q3 CY18 is ₹5.6 billion, a decrease of ~16.7% compared to
Adjusted EBITDA of ₹6.7 billion achieved during Q3 CY17. Adjusted EBITDA in the Carbon decreased by ₹ 1.0 billion due lower volumes coupled with increase in raw material costs. Adjusted EBITDA in Advanced material remained similar to previous year. Adjusted EBITDA from the Cement decreased by ₹ 0.1 billion, due to increase in operating cost.