For the quarter ended March, Rain Industries' revenue was up 34%YoY, but net profit fell 16.3% The company saw a 3 percent decline in volumes, both annually and sequentially.
The lackluster volumes of carbon products Rain is seeing is due to calcined petroleum coke (CPC), the sales of which declined by 10 percent quarter-on-quarter. Rather than shifts in actual demand, the fall was because of delays in shipments to domestic clients. These delays were primarily due to long negotiations about the pass through of higher import duty. Rain management believes this will get resolved by the second half of this calendar year, which means residual impact is likely in the next quarter as well.
The company also saw Advanced Materials EBITDA fall 40.7% YoY on maintenance shutdowns and adverse exchange rate movements. One of the upsides in the company's balance sheet has been lower finance costs, after Rain refinanced its debts. The company's share price is still under pressure - while IDBI analysts have issued a buy call post results with its current price competitive, this might be more amenable for investors willing to see an additional fall in the short term.