Small-cap stock surges 13% after reporting ₹73 Cr profit, recovering from ₹258 Cr loss in previous quarter

The shares of  a leading global supplier of high-grade refractory products, systems, and solutions, surged 13% on Friday. The stock hit an intraday high of ₹668 per share after the company announced a significant financial turnaround, reporting a net profit of ₹73 crores in the June quarter. This marks a remarkable recovery from the ₹258 crore net loss recorded in the previous quarter.

By 11:45 a.m., RHI Magnesita India Ltd shares were trading at ₹663.85 per share, up 12.2% from the previous close. The company currently boasts a market capitalization of ₹13,642 crores.

What Happened:

RHI Magnesita India Ltd’s latest exchange filings revealed a strong financial performance for Q1 FY25. The company reported a consolidated net profit of ₹73 crores, showing a 55% year-over-year growth. Despite this, total revenue for the quarter stood at ₹879 crores, a 5.2% decline compared to the same period last year.

Quarter-on-quarter, the company rebounded from a net loss of ₹258 crores in Q4 FY24 to a net profit of ₹73 crores in Q1 FY25, despite a 6.7% drop in revenue. Additionally, the company achieved a 16% increase in EBITDA, recording ₹878 crores, down from ₹928 crores in the corresponding quarter of the previous financial year.

About the Company:

RHI Magnesita India Ltd is a global leader in manufacturing and supplying high-grade refractory products, systems, and solutions. These products are essential for high-temperature processes exceeding 1,200°C and are utilized in various industries, including steel, cement, non-ferrous metals, and glass. The company’s offerings include Magnesia and Alumina-based bricks and mixes tailored for large industrial customers, as well as specialty refractory products like Isostatic products and Slide Gates designed to meet specific industry needs.

As of June 2024, Foreign Institutional Investors (FIIs) have increased their stake in the company to 4.74%, up from 3.78% in March 2024. Promoters hold a 56.07% stake, while retail investors possess 26.40%. Over the past 12 months, the share price has gained 4%.

RHI Magnesita’s management aims to double production capacity and revenue by FY 2025-26 compared to 2020-21 through both organic and inorganic growth strategies.