Worst day in 20 months for Rain Industries investors; here is what triggered it

Rain Industries share price news today: Rain Industries shares fell sharply on Monday after the Hyderabad-headquartered company, engaged in the manufacturing of carbon, advanced materials and cement, reported a weak set of quarterly numbers. The Rain Industries stock tumbled by as much as Rs 23.3, or 11.3 per cent, to Rs 183.1 apiece in early deals on BSE, its biggest intraday fall since June 20, 2022. 

At 10 am, the stock continued to struggle below the flatline, though having recovered some of its losses, at Rs 191.3 apiece on the bourse, down 7.3 per cent for the day. 

On Saturday, the company reported a consolidated net loss of Rs 1,118.8 crore for the quarter ended December 31, 2023, in stark contrast to a consolidated net profit of Rs 89.5 crore for the corresponding period a year ago. Its revenue from operations for the fourth quarter of the year stood at Rs 4,100.6 crore, a decrease of 24.9 per cent on a year-on-year basis. 

Rain Industries, which follows a January-December financial year, said it took a non-cash goodwill impairment charge of Rs 732 crore due to an increase in the weighted average cost of capital. 

The company reported Rs 167.8 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three-month period under review, as against Rs 662.9 crore a year ago.

Rain Industries' carbon sales volumes declined 5.3 per cent to 5,84,000 metric tonnes while cement sales volumes grew 11 per cent to 8,96,000 metric tonnes. 

The fall in carbon volumes was primarily caused by lower demand and delayed shipments, with the average blended realisation decreasing 26.8 per cent on account of lower market quotations across all regions, the company said. 

While revenue from the carbon segment decreased 30.7 per cent, that from the cement unit increased 3.8 per cent, it added.

Rain Industries shares: Past performance 

Rain Industries shares have grown 27 per cent in the past year, in line with the headline Nifty50 index. 

At Friday's closing price, the stock was up 33.9 per cent for the year so far, sharply outperforming a 1.8 per cent rise in the index.

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