Revenue from operations rose 5.6% to ₹1,014 crore from ₹960.3 crore a year earlier.
Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 34.7% to ₹137.6 crore from ₹102.1 crore, as the company recovered higher input costs. EBITDA margin widened to 13.6% from 10.6%.
Shipment volumes stood at 122 kilotonnes during the quarter.
RHI Magnesita India Chairman Parmod Sagar said the company delivered revenue and profit growth despite pricing pressure, cost inflation and intense competition. He also pointed to the company’s 4PRO business model and its focus on providing solutions to customers.
Industry faces pricing and cost pressures
RHI Magnesita India said the refractory industry continues to face pricing pressure and growing competition from global and regional players as companies expand existing facilities and build new ones.
The industry is also dealing with higher raw-material, energy and logistics costs.
Demand from key customer industries remained supportive. Steel producers had a strong operational quarter, helped by capacity additions, blast-furnace ramp-ups and higher utilisation.
The cement industry also continued to grow as producers added capacity and invested in expansion, though higher fuel and raw-material costs weighed on margins.
Company steps up backward integration
RHI Magnesita India said it advanced its backward-integration efforts through its quartzite mines and diversified its energy sources to improve supply security and reduce the risk of disruptions.
The company also introduced automated drying technology aimed at improving capacity, productivity and product quality.
Energy consumption fell about 7% from a year earlier, while carbon-dioxide emissions declined about 6%, the company said.
Pankaj Malhan takes over as CEO
The June quarter also marked a leadership change at RHI Magnesita India, with Pankaj Malhan taking over as managing director and chief executive. Sagar continues as chairman.
Malhan said the quarterly performance demonstrated the company’s ability to navigate global and domestic challenges. He said the company would focus on strengthening execution and using its 4PRO model to support growth.
Recycling facility planned in Odisha
Separately, RHI Magnesita India said in June that it had entered into a joint-venture agreement with Khemka Refractories Pvt. Ltd. to establish a refractory recycling facility in India.
Refractories are heat-resistant materials used to line furnaces, kilns and reactors in industries including steel, cement and glass. They are consumed over time and need to be periodically replaced, making the recovery and recycling of used refractory material a potential source of reusable raw material.
The proposed facility will be built in Odisha, near major steelmaking hubs, and will collect, process and recycle used refractory materials, according to the company.
RHI Magnesita India shares closed 2.3% lower at ₹413.80 on August 11.
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