RHI Magnesita India posts 23% fall in net profit at Rs 58.67 crore in Dec quarter

In a separate statement, Parmod Sagar, MD & CEO of RHI Magnesita India, said that there has been a pressure on the margins due to foreign exchange fluctuations and further increase in the cost of the traded goods arising out of the energy cost hikes in Europe as a fall out of the war. (Representative Image)

RHI Magnesita India on Monday posted a 23 per cent fall in its consolidated net profit at Rs 58.67 crore for the December quarter, on account of higher expenses.

The company had clocked a net profit of Rs 76.08 crore in the October-December period of fiscal 2021-22, the company said in a regulatory filing.

Its total expenses soared to Rs 570.12 crore, compared to Rs 446.39 crore a year ago.

Total income rose to Rs 649.38 crore in the December quarter from Rs 546.51 crore in the year-ago quarter.

In a separate statement, Parmod Sagar, MD & CEO of RHI Magnesita India, said that there has been a pressure on the margins due to foreign exchange fluctuations and further increase in the cost of the traded goods arising out of the energy cost hikes in Europe as a fall out of the war.

"The board of directors ...approved the raising capital and to issue and allot additional equity shares for an aggregate amount not exceeding Rs 1,500 crore," it said.

Further, Sagar said in the last two months, the company completed the acquisition of two leading refractory makers in India Dalmia OCL and refractory business of Hi-Tech Chemicals.

A subsidiary of Vienna-based RHI Magnesita, RHI Magnesita India Ltd is a global supplier of high-grade refractory products used by major industries, including steel, cement, non-ferrous metals and glass.