RHI Magnesita India Limited Q3 & 9M FY’24 Earnings Conference Call February 14, 2024
- On blended EBITDA, the margin was adversely impacted due to investment in increasing skilled workforce and higher year till date bonus provision, which together offset the benefit from lower material cost.
We recently announced plans to close down our Bhilai plant, which is under RHI Magnesita India Refractory Limited, this plant comprises hardly of 0.07% of our consolidated revenue. It’s net worth is hardly 0.04% of our consolidated revenue. This plant is much smaller than the other plant under RHIMIRL and produces only one product which can be made at a larger scale at our Rajgangpur unit more effectively. Therefore, this move will help the cost efficiencies, economies of scales and overall consolidation.
We also announced plans to amalgamate RHIM Seven Refractory Limited into RHIMIRL. This move aims to consolidate the refractory business acquired from Dalmia Bharat Group at one place and effectively managed well under one entity. We expect this to enhance value, expand net worth, provide a competitive edge, reduce cost and streamline the corporate structure
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About macro view of strategy, as mentioned in the past, one of our key focus area is increasing our share, industrial and iron making and value added products through product diversification and bringing synergies from our acquisitions. We are actively taking the initiative to consolidate all our operations and improve internal efficiencies. RHI Magnesita aims to leverage its expertise, capacities, and market vision to capitalize on market opportunities.
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The benefits of the recent acquisitions are reflected in the form of higher production and shipments as well as more diverse product portfolio. These moves position the company to cater to a wider range of end-applications.
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