Rain Industries reports Rs 4.42bn net loss for 2024 as revenue declines

Rain Industries Limited has released its audited financial results for the fourth quarter and the full year ending December 31, 2024, revealing a significant decline in revenue and profitability. The company reported ₹153.74 billion in revenue from operations, representing a 15.2% year-over-year decrease compared to ₹181.41 billion in 2023. Despite stable sales volumes in some business segments, lower market realizations and weaker pricing trends affected overall financial performance.

For the full year, adjusted EBITDA margin stood at 9.7%, down from 11.1% in 2023. The company posted an adjusted net loss after tax of ₹4.42 billion, in stark contrast to the ₹1.52 billion adjusted profit recorded in the previous year. The steep decline in earnings reflects challenging market conditions across key industries Rain Industries serves, including carbon, advanced materials, and cement.

How Did Rain Industries Perform in Q4 2024?

In the fourth quarter of 2024, revenue from operations fell to ₹36.76 billion, marking a 10.3% decline compared to the same period in 2023. However, adjusted EBITDA margin for the quarter improved to 10.6%, up from 6.8% in Q4 2023, indicating improved cost management despite lower revenue. The company reported an adjusted net loss after tax of ₹1.21 billion, a smaller loss compared to the ₹1.96 billion recorded in Q4 2023.

The quarterly results reflect mixed performance across different business segments, with some divisions showing volume growth but struggling with weaker price realizations. Rain Industries continues to navigate global economic uncertainties, supply chain disruptions, and fluctuating currency exchange rates, which have influenced its financial outcomes.

How Did the Carbon Segment Impact Rain Industries’ Financials?

The carbon segment remained the largest revenue contributor for Rain Industries in 2024, although its net revenue dropped by 19.8% year-over-year, from ₹132.97 billion in 2023 to ₹106.57 billion. The decline was largely due to falling market prices for carbon-based products, which overshadowed a 3.6% increase in sales volumes. The segment sold 2.39 million metric tonnes of products in 2024, benefitting from higher capacity utilization at its Indian CPC plants following regulatory relief on import restrictions.

Despite the drop in revenue, adjusted EBITDA for the carbon segment reached ₹12.33 billion, reflecting a 31.6% quarterly increase in Q4 2024. However, for the full year, adjusted EBITDA declined by 29.8%, showing that profitability pressures remained a concern. The adjusted EBITDA margin stood at 11.6%, slightly lower than 13.2% in 2023.

Why Did the Advanced Materials Segment See Growth?

The advanced materials division showed resilience, recording a 4.5% increase in net revenue, rising from ₹32.31 billion in 2023 to ₹33.78 billion in 2024. Sales volumes in this segment expanded by 14.2% year-over-year, reaching 290 thousand metric tonnes, driven by strong demand in the chemical intermediates sub-segment. However, average price realizations fell by 3.6%, reflecting global commodity price fluctuations.

Despite pricing pressures, adjusted EBITDA for advanced materials surged by 70.4%, reaching ₹2.57 billion, a significant improvement from the ₹1.51 billion recorded in 2023. The adjusted EBITDA margin for the segment rose to 7.6%, up from 4.7% in 2023, reflecting better cost efficiencies and operational improvements.

What Challenges Did Rain Industries Face in the Cement Segment?

Rain Industries’ cement segment struggled throughout 2024, with sales volumes declining by 11.9% year-over-year to 2.85 million metric tonnes. The net revenue from cement operations fell by 19.2%, totaling ₹12.31 billion, as the company faced weaker market demand and lower price realizations.

The segment’s adjusted EBITDA dropped sharply, from ₹1.06 billion in 2023 to just ₹78 million in 2024, reflecting a steep 92.7% decline. The adjusted EBITDA margin plummeted from 7.0% to just 0.6%, indicating rising operating costs and reduced pricing power in an increasingly competitive market.

How Is Rain Industries Managing Its Debt Obligations?

Rain Industries ended 2024 with total debt of $918 million, slightly lower than the $983 million reported in 2023. The company successfully repaid €32.9 million in Euro-denominated term loans and reduced its overall borrowing costs. The net debt at the end of 2024 stood at $699 million, reflecting its ongoing efforts to improve financial stability.

The company has assured investors that it has sufficient liquidity to meet its $44 million secured note repayment in April 2025. Additionally, it maintains undrawn working capital loan facilities, which provide financial flexibility for medium-term cash flow management.

What Is the Outlook for Rain Industries in 2025?

Rain Industries faces a challenging market environment heading into 2025, with uncertainties surrounding global demand, pricing fluctuations, and supply chain disruptions. While the carbon and advanced materials segments showed signs of operational strength, ongoing pricing pressures remain a concern. The cement business, in particular, may continue to struggle unless market demand stabilizes.

Despite these challenges, the company remains focused on cost optimizations, operational efficiencies, and strategic debt management to navigate financial uncertainties. Currency exchange trends, raw material cost adjustments, and industry-specific demand fluctuations will play a critical role in shaping Rain Industries’ performance in the coming year.

Rain Industries experienced a difficult financial year in 2024, marked by declining revenue from operations, weaker price realizations, and a ₹4.42 billion net loss after tax. The carbon segment, despite growing volumes, faced pricing pressure, while the advanced materials segment showed strong EBITDA growth. However, the cement segment struggled significantly, impacting overall profitability.

Looking forward, Rain Industries aims to stabilize its financial position by leveraging cost efficiencies, debt management strategies, and operational improvements. As 2025 begins, the company’s ability to adapt to market challenges and maintain positive EBITDA levels will be crucial in determining its long-term trajectory.