RHI MAGNESITA INDIA LIMITED CC-Nov25.pdf · 2025-11-12
Good afternoon Pramod Ji. This is Yash Shah from YPSPMS. We have been invested in the company since last 11 years. So we have seen multiple cycles of the company. But one thing is very clear before the Dalmia acquisition, I would not like to go into the verticals. But before the Dalmia acquisition, we had almost reached a PBT of around INR 100 crores per quarter on a very low turnover, say, around INR 750 crores or INR 800 crores turnover. With this acquisition, we are nowhere near to it. Like earlier, the EBITDA margins were 15%. If you see them now, it's coming to around -- PBT margins are now coming to around 5% -6%. So plus the equity dilution, which we spoke around, I guess, 15 months back that the equity dilution was opted because the promoter company had debt on its book instead of going for debt. So the equity has gone up so much and the profit has not paid up to the mark. So that has been clearly reflecting in the share price as well over the last 3 years. And yes, that is it. So are we looking for good times ahead? Are the bad times still going to prevail for some more years? Or how is the business picture looking overall?
Just to interrupt. So if you say that the business has been good, so the PBT on a quarterly basis was INR 100 crores before the Dalmia acquisition. If it has come down to INR 50 crores, it can be only because of 2 reasons. Either the Dalmia business is making losses or the current business margins have gone down. There cannot be a third reason, right?