Thread by @FinterestC

A thread on Rain Industries Limited
#StockMarket #Stocks

1/ About the Company
RAIN Group is one of the world’s largest producers of calcined petroleum coke and coal tar pitch

3 key business verticals:
Carbon
Advanced Materials
Cement

17 production facilities in 7 countries across 3 continents

2/ Carbon & Adv Mat Business
Carbon business converts the by-products of oil refining and steel production into high-value carbon-based products
Adv Mat business carries transforms a portion of carbon output, petrochemicals and other raw materials into high-value raw materials

3/ Cement Business
Cement business produces and markets high-quality ordinary portland cement and Portland pozzolana cement
Production cap (Overall)
2.1M tons of calcined petroleum coke
4.0M tons per annum of cement
1.5M ton of tar Distillation
0.3M ton of specialty chemical

4A/ Number crunching
The Revenue declined post pandemic slowdown
The company found it economical to suspend operations temporarily till supply demand situation improved, especially from a GPC perspective
The situation in improving in Q1CY2021
Margins improved on lower RM costs

4B/ Number Crunching
In Q1CY2021 Revenue was ₹ 30.08B and Adjusted EBITDA was ₹ 6.35B
Strong quarter performance due to improved demand and pricing for certain product
The company has started reducing debt
The net debt to EBITDA is at 3.2x which
Plans to reduce below 3x

5A/Carbon Market Outlook
Industries consuming RAIN’s CPC and CTP – aluminum, titanium dioxide and steel – are returning to their pre-COVID growth trajectories
Recovery of Chinese economy should drive increased demand for aluminum
Proprietary ACP should create new opportunities

5B/Adv. Material Market Outlook
Business has returned to 95% of pre-pandemic activity levels Regulatory changes and societal demand for cleaner and contaminant free products, such as adhesives used in hygiene products and food packaging, should lead to increasing demand

5C/Cement Market Outlook
India is the 2nd largest producer and consumer of cement
India continues to have the lowest per capita cement consumption at 235 kg compared with the global average of 521 kg
Demand is expected to improve by infra development in tier 2 and tier 3 cities

6A/ Major Capital Projects
Hydrogenated Hydrocarbon Resins (HHCR) Plant, Germany. The plant will expand the product portfolio & ramp up capacities to give economies of scale
The Vertical-Shaft Calcination Plant, India will begin production post approval for the import of GPC

6B/ Major Capital Projects
Anhydrous Carbon Pellets (ACP) Plants, India and USA
The aforementioned plant in the US (200000 tons) is underway without disruptions
The Indian plant (250000 tons) construction is projected to recommence during 2021

6C/ Major Capital Projects
Additional 4.7M tons of smelting capacity to become operational with new plants and restarts of previously idled facilities
Plans to sell a blend of ACP and CPC to aluminum smelters
Headwinds in the domestic CPC business can be compensated through ACP

7/ Future Outlook
The steady improvement in profitability per ton for carbon products and a host of advanced materials products has improved business
Demand in aluminum end-markets has rebound with re-opening of economy
Restrictions in China improving global opportunities