Rain Inds in cloud

Rain Industries put up a very poor show for Q4CY21 (Jan-Dec year). It recorded a consolidated net loss of Rs.97 crore v/s net profit of Rs.307 crore (YoY).

The loss was despite a 52% rise in revenue from operations at Rs.4026 crore and a 13% rise in EBITDA at Rs.541 crore. Tax expenses more than doubled up from Rs.123 crore to Rs.296 crore. This includes a net impact of Rs.188 crore of higher valuation allowance for deferred tax assets in Germany offset by a reversal in US.

The net debt of the company currently stands at Rs.91 crore, all in US dollar denomination. The major debt repayments are scheduled to start in January 2025.

The stock is among the top losers on the BSE since the opening bell, opening 9.5% lower at Rs.181, going down over 14% to an intraday low at Rs.171.40, very close to the 10% LC of the day at Rs.169.75.