Rain Industries Ltd:Annual Report 2023-24 Analysis

Rain Industries Ltd.: A Comprehensive Overview #

About the Company #

• Year of Establishment and Founding History: Founded in 1974 as a small calcined petroleum coke (CPC) plant.

• Headquarters Location and Global Presence: Headquarters are located in Hyderabad, India. The company has a global presence with operations in Europe, North America, and Asia.

• Stock Exchange Listing Details and Market Capitalization: Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

• Recent Financial Performance Highlights: (Insert details from latest available financial reports - revenue, profit, growth rates, key financial ratios. Example: For FY23, Rain Industries reported revenue of X, and a net profit of Y, representing a growth of Z% compared to the previous year.)

• Management Team and Leadership Structure: (Include names and titles of key executives like CEO, CFO, etc. Describe the overall organizational structure if possible.)

Their Products #

• Complete Product Portfolio with Categories:

  • Carbon Products: Calcined Petroleum Coke (CPC), Coal Tar Pitch (CTP), Green Petroleum Coke
  • Advanced Materials: Resins, Superplasticizers, Concrete Admixtures
  • Cement

• Flagship or Signature Product Lines: Calcined Petroleum Coke (CPC) and Coal Tar Pitch (CTP) are considered flagship products.

• Key Technological Innovations or Patents: Focus on developing specialized formulations and grades of CPC and CTP for various applications.

• Manufacturing Facilities and Production Capacity: Possesses manufacturing facilities across India, Europe, and North America. (Specific capacity details would need to be sourced.)

• Quality Certifications and Standards: (List certifications - ISO, etc.)

• Any Unique Selling Propositions or Technological Advantages: Focus on customized product solutions, consistency in quality, and a geographically diversified production base.

Primary Customers #

• Target Industries and Sectors: Aluminum, Graphite, Specialty Chemicals, Construction (Cement Admixtures)

• Geographic Markets (domestic vs. international): Primarily serves international markets.

• Distribution Network and Sales Channels: Employs a combination of direct sales and distribution partners.

Major Competitors #

• Direct Competitors in India and Globally: (List key competitors in each region. This requires market research.)

• Competitive Advantages and Disadvantages: (Analysis of Rain’s strengths and weaknesses compared to its competitors - cost structure, technology, market reach, etc.)

Future Outlook #

• Expansion Plans or Growth Strategy: Focus on expanding capacity in key product lines and penetrating new geographic markets.

• Sustainability Initiatives or ESG Commitments: (Details of Rain’s efforts towards environmental responsibility, social impact, and corporate governance.)

• Industry Trends Affecting Their Business: (Examples: Aluminum production trends, demand for specialty chemicals, environmental regulations.)

Rain Industries Limited - Financial Analysis Report (CY2024) #

3-Year Trend Analysis of Key Financial Metrics #

Revenue & Profitability #

• Consolidated revenue decreased by 15% in CY2024 to ₹153,744 Mn.
• Consolidated adjusted operating profit margin contracted to 9.7% in CY2024.
• Adjusted net loss of ₹4,419 Mn in CY2024.
• Return on Net Worth (Consolidated) declined to -7% in CY2024.

Debt & Capital Structure #

• Consolidated Net Debt to Equity ratio improved slightly to 0.97x in CY2024.
• Interest Coverage Ratio decreased significantly by 35% year-on-year.
• Long-term debt reduced by US$65 million during CY2024.

Cash Flow & Investments #

• Positive free cash flow from operations in CY2024 due to working capital reduction.
• Capital expenditure in CY2024 was approximately US$78 Mn.
• R&D expenditure was ₹638 Mn in CY2024.

Shareholder Returns #

• Interim dividend of ₹1 per share was declared and paid for CY2024.

Employee Metrics #

• Employee and worker turnover rates improved in CY2024.

Business Segment Performance (CY2024 vs CY2023) #

Carbon Segment #

• Performance: Revenue decreased by 20% to ₹106,575 Mn. Operating Profit margin decreased to 11.6%. Capacity utilization was 71%.
• Market Dynamics/Response: Faced margin compression. Benefitted from relaxation of GPC/CPC import restrictions in India.
• Outlook: Expect return to normal margins. Continued focus on cost leadership. Exploring biocarbon.

Advanced Materials Segment #

• Performance: Revenue increased by 4.5% to ₹33,786 Mn. Operating Profit margin improved to 7.6%. Capacity utilization was 63%.
• Market Dynamics/Response: Demand muted in Europe but offset by non-European sales. Introduced ISCC PLUS certified eco line.
• Outlook: Focus on expanding sustainable products, diversifying into growing markets.

Cement Segment #

• Performance: Revenue decreased by 19% to ₹12,312 Mn. Operating Profit margin dropped sharply to 0.6%. Capacity utilization decreased to 71%.
• Market Dynamics/Response: Faced challenges from moderate capacity utilization and lower sales realizations. Continued focus on cost optimization.
• Outlook: Anticipates ~8% industry sales growth in CY2025. Aiming for GreenCo assessment.

Major Strategic Initiatives and Progress (CY2024) #

Supply Chain Resilience #

• Leveraged global blending strategy after relaxation of Indian GPC/CPC import restrictions.

Innovation Leadership #

• Expanded HCR portfolio. Introduced ISCC PLUS certified eco resins. Advanced R&D in energy storage materials.

Asset Optimisation & Operational Excellence #

• Ramped up Indian Carbon plant utilization. Improved HHCR plant reliability in Germany.

Cost Efficiency #

• Implemented strategic cost-control measures group-wide. Improved energy efficiency.

Strengthening ESG Commitment #

• Increased adoption of recycled/biobased raw materials. Progressed energy transition projects. Expanded beneficial-use applications for lime byproducts.

Risk Landscape Changes and Mitigation #

Key Risks #

• Heightened market volatility, geopolitical conflicts, shifting trade policies, increased competition for raw materials, regulatory hurdles, decarbonization pressures, cybersecurity threats, and talent management challenges.

Mitigation #

• RAIN leverages its global footprint, flexible logistics, diverse production technologies, and ability to use alternative raw materials. Proactive regulatory monitoring. Robust internal controls.

ESG Initiatives and Metrics #

Environmental #

• Energy: Generated 1.04 Mn MWh from WHR systems. Generated 0.03 Mn MWh from solar.
• Emissions: Pursuing GHG reduction. Scope 1 emissions ~2.90 Mn tCO2e, Scope 2 ~0.15 Mn tCO2e.
• Water: Total withdrawal ~7.08 Mn m³, consumption ~3.70 Mn m³.
• Waste & Circularity: Focus on upcycling byproducts. ~9% recycled input material used.
• Biodiversity: Planted 52,900+ trees in CY2024.

Social #

• Safety: Achieved group-wide TRIR of 0.13 (OSHA).
• Employee Well-being & Development: Total employees 2,394. 56,700+ cumulative training hours.
• Community: Spent ₹187 Mn on CSR/donations.

Governance #

• Structure: Board chaired by Independent Director, comprises 7 directors (4 Independent).
• Ethics & Compliance: Code of Business Conduct & Ethics adopted. Whistle-blower policy in place.
• Sustainability Oversight: Sustainability Steering Committee (SSC) established, reporting to Board.

Detailed Analysis #

Rain Industries Limited - Financial Analysis (CY2024) #

Comparative Financial Performance Analysis (Consolidated) #

Profitability: #

• Revenue from Operations decreased by 15.0% YoY, from ₹181,007 Mn (CY2023) to ₹153,744 Mn (CY2024). This was primarily due to lower price realizations across segments, partially offset by increased CPC volumes post-regulatory relief in India.
• Adjusted Operating Profit declined by 25.4% YoY to ₹14,981 Mn in CY2024 from ₹20,071 Mn in CY2023. The Operating Profit Margin contracted from 11.1% to 9.7%, attributed to margin compression from lagging raw material cost resets and higher operating costs.
• The Group reported an Adjusted Net Loss After Tax of ₹4,419 Mn in CY2024, a significant decline from an Adjusted Net Profit After Tax of ₹1,526 Mn in CY2023.
• Return on Net Worth deteriorated significantly from 2% in CY2023 to (7%) in CY2024 due to the net loss incurred.

Segment Performance: #

• Carbon: Revenue decreased 20% YoY despite a 3.6% volume increase, driven by a 23% fall in average blended realizations. Adjusted EBITDA decreased due to margin compression. Expected to return to normal margins post-relaxation of import restrictions in India.
• Advanced Materials: Revenue increased 4.5% YoY due to a 14% volume increase, offsetting an 8% decrease in realizations. Operating margin improved from 4.7% to 7.6%. Stabilization of HHCR plant operations and cost measures expected to improve future performance.
• Cement: Revenue decreased 19% YoY due to an 8% decline in realizations and a 12% decrease in volumes. Capacity utilization fell from 80% to 71%. Operating margin significantly decreased from 7.0% to 0.6% due to lower realizations and higher operating costs. Anticipates improved performance in CY2025 driven by demand growth and cost optimization.

Balance Sheet Analysis (Consolidated - YoY Comparison) #

Assets: #

• Total Assets decreased by 5.4% from ₹200,858 Mn to ₹189,903 Mn.
• Non-current assets decreased marginally by 2.5%. Goodwill remained stable (net of impairment), while Property, Plant & Equipment decreased by 6.1%.
• Current Assets decreased by 11.4%, mainly driven by a 20.1% decrease in Trade Receivables and a 3.1% decrease in Inventories. Cash & Cash Equivalents decreased by 4.0%.

Liabilities & Equity: #

• Total Equity decreased by 12.1% from ₹77,654 Mn to ₹68,250 Mn, primarily due to the net loss reported for the year.
• Total Liabilities decreased by 1.5% from ₹123,203 Mn to ₹121,653 Mn.
• Non-current liabilities decreased by 11.1%, largely due to a reduction in non-current borrowings (down 11.5%).
• Current liabilities increased by 24.8%, driven mainly by a significant increase in current borrowings (up 58.8%, including reclassification of current maturities of non-current borrowings).

Significant Changes in Major Line Items (>10% YoY - Consolidated) #

Working Capital & Liquidity Analysis (Consolidated) #

Turnover Ratios: #

• Debtors Turnover Ratio: 8.32 (CY2024) vs 8.85 (CY2023) - Slight decrease (-6.0%).
• Inventory Turnover Ratio: 2.83 (CY2024) vs 2.76 (CY2023) - Marginal increase (+2.5%). (Note: Calculated as COGS / Avg Inventory; COGS estimated).
• Trade Payables Turnover Ratio: 5.96 (CY2024) vs 7.73 (CY2023) - Decrease (-22.9%). (Note: Calculated as Purchases / Avg Payables; Purchases estimated).

Liquidity: #

• Current Ratio: Decreased significantly from 2.44 in CY2023 to 1.75 in CY2024 (-28.3%), mainly due to the sharp increase in current borrowings (including current maturities).
• Cash Flow: Despite lower profits, the Group generated positive cash flow from operations (₹19,130 Mn), aided by working capital release (mainly inventory reduction). Net cash used in investing was ₹2,751 Mn, and net cash used in financing was ₹17,078 Mn (driven by debt repayments and dividends).
• Liquidity Position: Cash and cash equivalents stood at ₹13,908 Mn (down 4.0% YoY). The decreased current ratio indicates tightening short-term liquidity, requiring careful working capital management.

Asset Quality (Consolidated) #

Impairment: #

• Goodwill: No impairment recognised in CY2024. A significant impairment of ₹7,319 Mn was booked in CY2023 (₹5,607 Mn in Carbon Calcination, ₹1,712 Mn in Carbon Distillation) due to macroeconomic factors increasing the cost of capital and operating costs. As of Dec 31, 2024, goodwill stood at ₹62,437 Mn. Sensitivity analysis indicates headroom remains for most CGUs, but Carbon Calcination and Distillation CGUs have lower headroom.
• Capital Work In Progress (CWIP): Impairment loss of ₹731 Mn recognised in CY2024 (₹187 Mn in CY2023) based on management evaluation.

Trade Receivables: #

• Allowance for Expected Credit Losses (ECL): Net allowance reduced from ₹427 Mn to ₹384 Mn. Movement includes additional provisions offset by reversals/utilization.
• Ageing: The vast majority (99.7%) of receivables are classified as ‘considered good’. The proportion past due but not impaired remained relatively stable.

Debt Structure and Maturity Profile (Consolidated) #

Structure: #

• Total Borrowings (Non-current + Current): ₹77,467 Mn (Dec 31, 2024) vs ₹81,483 Mn (Dec 31, 2023). Decrease mainly due to repayments.
• Mix: Primarily comprises Senior Secured Notes (USD 43.7 Mn due 2025, USD 449.0 Mn due 2029) and Term Loan B (EUR 310.6 Mn due 2028), along with Revolving Credit Facilities and Indian term loans/working capital facilities. Substantial portion is secured.

Key Ratios: #

• Net Debt Equity Ratio: Increased from 0.87 in CY2023 to 0.96 in CY2024 (+10.3%), indicating higher leverage relative to reduced equity.
• Interest Coverage Ratio: Decreased significantly from 2.42 in CY2023 to 1.57 in CY2024 (-35.1%), reflecting lower operating profit and higher interest costs on recent borrowings/amended facilities.

Maturity Profile (Contractual Undiscounted Cash Flows as of Dec 31, 2024): #

• Less than 1 year: ₹13,948 Mn
• 1-2 years: ₹8,604 Mn
• 2-5 years: ₹65,606 Mn
• Major repayments concentrated in the 2-5 year bracket (includes 2029 Notes and TLB principal). USD 43.7 Mn notes mature in CY2025.

Off-Balance Sheet Items (Consolidated) #

Contingent Liabilities (as of Dec 31, 2024): #

• Income Tax Claims: ₹398 Mn
• Wheeling Charges (Disputed): ₹448 Mn (Bank Guarantee issued for ₹147 Mn)
• Customs Duty, Sales Tax, etc. (Disputed): ₹1,966 Mn
• Corporate Guarantees given: ₹110 Mn (to a power customer)

Rain Industries Limited - Financial Analysis (CY 2024) #

Revenue Analysis #

• Consolidated Revenue: Declined by 15% YoY, from ₹181,754 million in CY 2023 to ₹153,744 million in CY 2024. This was primarily due to lower price realizations across all segments, partially offset by increased volumes and favorable currency movements.
• Segment Revenue Breakdown (CY 2024):
  • Carbon: ₹106,575 million (69.81% of total). YoY Decline: ~20%. Volumes increased 3.6%, but average blended realization decreased 23%.
  • Advanced Materials: ₹33,786 million (22.18% of total). YoY Increase: 4.5%. Volumes increased 14%, offset by an 8% decrease in realizations.
  • Cement: ₹12,312 million (8.01% of total). YoY Decline: 19%. Decrease driven by lower price realizations (-8%) and lower volumes (-12%). Capacity utilization dropped from ~80% to ~71%.
• Geographical Revenue Diversification (CY 2024):
  • North America: Largest contributor.
  • Europe: Significant contributor.
  • APAC: Substantial contributor.
  • Others: Minor contributor.

Cost Structure Analysis (CY 2024 vs CY 2023) #

• Cost of Materials Consumed: ₹86,073 Mn (56.0% of Total Revenue) vs. ₹104,451 Mn (57.5% of Total Revenue).
• Changes in Inventories: ₹1,015 Mn (Favorable) vs. ₹4,361 Mn (Unfavorable).
• Employee Benefits Expense: ₹14,001 Mn (9.1% of Total Revenue) vs. ₹13,563 Mn (7.5% of Total Revenue).
• Finance Costs: ₹9,346 Mn (6.1% of Total Revenue) vs. ₹8,114 Mn (4.5% of Total Revenue).
• Depreciation & Amortisation: ₹8,182 Mn (5.3% of Total Revenue) vs. ₹7,634 Mn (4.2% of Total Revenue).
• Other Expenses: ₹38,138 Mn (24.8% of Total Revenue) vs. ₹40,859 Mn (22.5% of Total Revenue).
• Impairment Loss: ₹731 Mn vs. ₹7,319 Mn.

Margin Analysis (CY 2024 vs CY 2023) #

• Operating Profit Margin (Reported): 9.5% vs. 11.1%.
• Adjusted Operating Profit Margin: 9.7% vs. 11.1%.
• Net Profit/(Loss) Margin (Reported): -3.7% vs. -5.3%.
• Adjusted Net Profit/(Loss) Margin: -2.9% vs. 0.8%.
• EBITDA (Reported): ₹14,981 Mn vs. ₹18,487 Mn.
• Segment Operating Margins:
  • Carbon: 11.6% vs 13.2%
  • Advanced Materials: 7.6% vs 4.7%
  • Cement: 0.6% vs 7.0%

Operating Leverage #

The decline in consolidated revenue by 15% led to a proportionally larger decline in adjusted operating profit, indicating the presence of operating leverage.

Non-recurring Items #

• Non-cash impairment charge of capital projects.
• Expenses towards non-recurring items.
• Proceeds from Insurance claims related to prior periods.
• Provision for severance payments in Germany (CY24 specific: ₹716 Mn).
• Prior period expenses due to regulatory changes.
• Foreign Exchange Loss / (Gain) on inter-company Debt Note.
• Tax impact on the above adjustments.

GAAP vs Non-GAAP Reconciliation #

EPS Analysis #

• Basic & Diluted EPS (Reported): ₹(16.78) in CY 2024 vs. ₹(28.51) in CY 2023.
• Adjusted Basic & Diluted EPS: ₹(13.14) in CY 2024 vs. ₹4.54 in CY 2023.

Quarterly Trends Commentary #

Commentary suggests a stabilization and realignment of finished product prices and raw material costs in the second half of 2024, signaling a potential return towards normalized margin ranges for the core Carbon segment moving into 2025.

Cash Management Analysis: Rain Industries Limited (CY 2024) #

Cash Flow Analysis #

• Operating Cash Flow (OCF): Positive OCF driven by working capital reduction, despite weaker financial performance. Key components include profit before tax adjusted for non-cash items and working capital changes.
• Investing Cash Flow (ICF): Standalone ICF was positive due to fixed deposit activity and dividend receipts. Consolidated ICF was negative due to capex.
• Financing Cash Flow (FCF): Negative due to borrowing repayments, interest payments, and dividend payments.
• Free Cash Flow (FCF): Generated FCF, allocated towards debt repayment (US$65 million).

Working Capital Management #

• Contributed positively to cash flows in CY 2024 through capital reductions.
• Debtors Turnover Ratio: Slight decrease (1% YoY).
• Inventory Turnover Ratio: Slight decrease (2% YoY).
• Adjustments for changes in trade receivables, loans & assets, trade payables, liabilities, and provisions.

Capital Expenditures (Capex) #

• Total capex: approximately US$78 million.
• Focused on maintenance capex and plant turnarounds.
• Investments: HHCR plant (Germany) and Indian calcination plants.
• Reduced capex anticipated over the next 3-5 years.

Shareholder Returns #

• Interim dividend: ₹1 per equity share (50% on face value of ₹2).
• No share buybacks conducted.

Debt and Coverage #

• Debt Levels: US$65 million reduction in long-term debt during CY 2024.
  • Net debt to equity ratio improved.
• Debt Service Coverage: Interest Coverage Ratio decreased significantly (Consolidated).
  • Standalone Debt Service Coverage Ratio improved significantly.
• Upcoming Maturities: US$44 million due in April 2025.
  • Major repayments scheduled post-October 2028.

Liquidity Position #

• Consolidated cash and cash equivalents: ₹13,119.85 million.
• Current Ratio: Decreased (Consolidated).

Rain Industries Limited Financial Analysis: CY2024 #

Overall Financial Performance (Consolidated Basis) #

Rain Industries Limited reported a decline in consolidated revenue from operations to ₹153,744 million in CY2024 from ₹181,189 million in CY2023, a decrease of approximately 15%. This was primarily driven by lower price realizations across segments, partially offset by increased volumes (notably in CPC) and favorable currency movements (USD/EUR appreciation against INR).

Operating profit (Adjusted) decreased to ₹14,981 million (9.7% margin) in CY2024 from ₹20,222 million (11.1% margin) in CY2023. The margin compression resulted from a lag in raw material cost resets relative to falling finished goods prices and higher operating costs.

The company reported an adjusted net loss after tax (attributable to owners) of ₹4,419 million in CY2024, compared to an adjusted net profit of ₹1,526 million in CY2023. Consequently, adjusted loss per share was ₹13.14 in CY2024 versus earnings per share of ₹4.54 in CY2023.

Despite weaker profitability, the Group generated free cash flow from operations due to reduced working capital deployment, enabling debt repayment of US$ 65 million (net, including FX impact).

Profitability Ratios #

• Adjusted Operating Profit Margin: Decreased to 9.7% in CY2024 from 11.1% in CY2023, reflecting market price realignments and cost pressures.
• Adjusted Net Profit Margin: Turned negative at (2.9%) in CY2024 compared to 0.8% in CY2023, driven by lower operating profits and finance costs.
• Return on Net Worth: Decreased significantly to (6.8%) in CY2024 from 2.0% in CY2023, indicating reduced profitability relative to shareholder equity.

Leverage Ratios #

• Net Debt Equity Ratio: Reported as 0.99x in CY24 vs 0.97x for CY23.
• Interest Coverage Ratio: Decreased to 1.6x in CY2024 from 2.4x in CY2023, primarily due to lower operating profit and increased borrowing costs.

Liquidity Ratios #

• Current Ratio: Decreased to 1.81x in CY2024 from 2.53x in CY2023, mainly due to an increase in the current portion of non-current borrowings.
• Cash and Cash Equivalents: Stood at ₹13,309 million as of Dec 31, 2024, compared to ₹14,440 million as of Dec 31, 2023 (Consolidated).

Efficiency Ratios #

• Debtors Turnover: Slightly decreased to 8.8x in CY2024 from 8.9x in CY2023.
• Inventory Turnover: Slightly decreased to 4.0x in CY2024 from 4.1x in CY2023.
• Accounts Payable Days: Reported as 203 days in CY2024 vs 173 days in CY2023 (Standalone basis, from BRSR section).

Segment Performance #

• Carbon: Revenue decreased by 20% to ₹106,575 million despite a 3.6% volume increase (driven by Indian plant utilisation). Operating profit margin contracted to 11.6% from 13.2% due to price/cost lag. Expected to return to normal margins with India import restrictions lifted.
• Advanced Materials: Revenue increased by 4.5% to ₹33,786 million, driven by a 14% volume increase (higher throughput, demand). Operating profit margin improved to 7.6% from 4.7% due to higher volumes and favorable currency effects. Expected to perform better with HHCR plant stabilization and cost measures.
• Cement: Revenue decreased by 19% to ₹12,312 million due to lower price realization (-8%) and lower volumes (-12%). Capacity utilization decreased to 71% from 80%. Operating profit margin significantly decreased to 0.6% from 7.0% due to lower realizations and higher costs amidst market consolidation. Expected to perform better in 2025 driven by demand growth and cost-optimisation initiatives.

Working Capital Ratios #

• Accounts Payable Days (Standalone): Increased from 173 days in CY2023 to 203 days in CY2024.

Conclusion #

CY2024 was challenging for Rain Industries, marked by revenue decline and significant margin compression, leading to a net loss. Performance varied by segment, with Advanced Materials showing improvement while Carbon and Cement faced headwinds. However, the company maintained positive operating cash flow, reduced debt, and anticipates improved performance, particularly in the Carbon segment due to regulatory relief in India, and in the Cement segment due to expected demand growth. Leverage metrics show some improvement, but liquidity tightened.

Financial Performance Analysis: CY2024 vs. CY2023 #

Consolidated Financial Overview #

• Revenue: Decreased by 15.1% to ₹153,744 million.
• Operating Profit (Adjusted): Decreased by 25.3% to ₹14,981 million (9.7% margin).
• Profit/Loss After Tax (Adjusted): Net loss of ₹4,419 million compared to a net profit of ₹1,526 million in CY2023.
• Debt & Liquidity: Net debt decreased to USD 773 million.
• Return on Net Worth: Declined to -7%.

Market Position and Competitive Landscape #

• Market Leadership: #1 global producer of Coal Tar Pitch (CTP), #2 global producer of Calcined Petroleum Coke (CPC).
• Strengths: Strong market position, diversified business profile, large-scale integrated facilities, flexible global supply chain, skilled workforce.
• Competitive Pressures: Industry consolidation, competition for raw materials.

Segment Performance #

Carbon (69.8% of Revenue) #

• Revenue: Decreased 19.9% YoY to ₹106,575 million.
• Sales Volume: Increased 3.6% to 2.40 MnT.
• Operating Profit Margin: Contracted to 11.6%.
• Key Development: Relaxation of GPC/CPC import restrictions in India.

Advanced Materials (22.2% of Revenue) #

• Revenue: Increased 4.5% YoY to ₹33,786 million.
• Sales Volume: Increased 14% to 0.29 MnT.
• Operating Profit Margin: Improved to 7.6%.
• Performance Drivers: Higher throughput of chemical intermediates and resins.

Cement (8.0% of Revenue) #

• Revenue: Decreased 19.0% YoY to ₹12,312 million.
• Sales Volume: Decreased 12% to 2.85 MnT.
• Capacity Utilization: Decreased to ~71%.
• Operating Profit Margin: Decreased to 0.6%.

Geographic Distribution & Market Penetration #

• Revenue diversification across North America, Europe, and APAC.
• Carbon segment benefits from reactivated global blending strategy.
• Advanced Materials segment expanding sales to non-European markets.
• Cement segment focused on the South Indian market.

Capital Expenditure & Investment #

Capital Expenditure #

• Maintenance capital expenditure was approximately USD 78 million.

Research & Development #

• Expenditure in CY2024 was ₹638 million.
• Focus on biocarbon materials and battery anode materials.

Operational Efficiency & Key Metrics #

• Capacity Utilization (CY2024): Carbon 71%, Advanced Materials 63%, Cement 71%.
• Energy Management: Generated 1.04 Mn MWh from waste-heat recovery and 0.03 Mn MWh from solar.
• Safety: Group-wide TRIR of 0.13.
• Human Capital: Total employees 2,394.
• Waste Management: Upcycled significant quantities of byproducts.
• Emissions: Reducing PM emissions.

Growth Initiatives & Challenges #

Strategic Priorities #

• Enhancing supply chain resilience, innovation leadership, capacity/operational excellence, cost excellence, strengthening ESG commitment.

Innovation #

• Focus on ACP technology, biocarbon, ISCC PLUS certified eco-resins, HHCR, and battery materials.

Supply Chain #

• Leveraging global blending strategy, strengthening supplier partnerships, optimizing logistics.

ESG #

• Strong focus on WHR, solar power, emissions control, waste upcycling, water management, tree plantation.

Challenges/Risks #

• Market volatility, geopolitical conflicts, GPC availability constraints, regulatory hurdles, potential trade policy changes, industry consolidation pressure, cybersecurity.

Financial Risk Analysis: Rain Industries Limited #

Strategic Risks #

Risk Description #

Market Volatility, Geopolitical Instability, and Regulatory Changes. Includes unpredictable global markets, direct/indirect impacts from conflicts (e.g., Ukraine, Middle East), shifting trade policies, and evolving environmental/industry regulations (e.g., GPC import restrictions in India, decarbonization policies). Competition for traditional raw materials from new market sectors. Industry consolidation, especially in the Indian cement market and potentially in Carbon/Advanced Materials.

Severity #

High. Directly cited as having “profound impact” and presenting “significant challenges.” Affects core raw material sourcing, logistics, sales markets, pricing, and margins across segments.

Likelihood #

High. Geopolitical tensions and market unpredictability are ongoing. Regulatory shifts are a constant factor. Competition is inherent.

Trend #

Increasing. Explicitly stated “increase in unpredictability” for 2025. Regulatory pressures (especially ESG-related) and competition are intensifying.

Mitigation Strategies #

• Geographic and business segment diversification.
• Emphasis on operational adaptability and flexibility (sourcing, logistics, production technology).
• Global blending strategy for CPC (reactivated in 2024).
• Strong, long-standing relationships with suppliers, customers, and logistics partners.
• Continuous focus on cost competitiveness and operational optimization.
• Investment in R&D for alternative raw materials (e.g., biocarbon) and new applications (e.g., battery materials).
• Proactive monitoring of regulatory landscape by dedicated team.
• Brand strength (“Priya Cement”) in specific markets.

Control Effectiveness #

Management states the company “weathered these storms” in 2024 due to adaptability and flexibility. Established risk governance structure (Board, RMC, Audit Committee) provides oversight. Investments in diverse production tech/locations enhance flexibility.

Potential Financial Impact #

Significant impact on Revenue (due to pricing/demand volatility), Margins (compression risk due to cost/price lag, realignment observed H2 2024), Cost of Goods Sold (raw material price fluctuations, logistics costs), Capacity Utilization (impacted by demand and raw material availability), potential need for higher Capex (mitigation, compliance), potential financing challenges if performance weakens.

Quantitative Metrics/YoY Changes #

• Revenue decreased 15% YoY (Consolidated CY2024 vs CY2023).
• Adjusted Operating Profit Margin decreased from 11.1% to 9.7% YoY.
• Adjusted Net Profit Margin decreased from 1% to -3% YoY.
• Return on Net Worth decreased from 2% to -7% YoY.
• Interest Coverage Ratio decreased by 35% YoY.
• Capacity Utilization (CY2024): Carbon 71%, Advanced Materials 63%, Cement 71% (Cement down from 80% in PY2023).

Operational Risks #

Risk Description #

Supply Chain Disruptions and Raw Material Constraints. Includes securing consistent supply of key raw materials (GPC, Coal Tar) amidst fluctuating availability and increasing competition. Managing complex global logistics (pipelines, rail, trucks, barges, ships) affected by geopolitical events and cost volatility. Risk of contamination during transit/storage.

Severity #

High. Directly impacts production costs, volumes, and ability to meet customer demand. Core to the business model.

Likelihood #

High. Ongoing geopolitical issues and market competition for feedstocks.

Trend #

Increasing/Stable. Geopolitical risks increasing, but reactivation of India blending strategy may stabilize some aspects.

Mitigation Strategies #

• Flexible and multi-modal global supply chain across three continents.
• Diversified supplier base and long-term sourcing agreements.
• Proprietary deep-water terminals and strategic storage.
• Advanced blending capabilities (CPC).
• Vertical integration (where applicable).
• Strong relationships with >10,000 supply chain partners.
• Logistics monitoring, standardized procedures, use of independent surveyors for quality control.
• Cross-segment logistical cooperation (Cement/Carbon in India).

Control Effectiveness #

Company demonstrated ability to shift flows and utilize blending. Enhanced focus on supply chain resilience is a stated strategic priority. Supplier Code of Conduct implemented in 2024.

Potential Financial Impact #

Increased Cost of Goods Sold (raw materials, freight), potential production slowdowns impacting revenue, margin pressure, higher working capital requirements if inventories build.

Quantitative Metrics/YoY Changes #

• Volumes increased 3.6% in Carbon segment (CY2024) despite challenges, partly due to lifted import restrictions.
• Advanced Materials volumes increased 14% (CY2024), though production faced raw material shortages.
• Cement volumes decreased ~12% (CY2024).

Risk Description #

Operational Efficiency and Asset Reliability. Maintaining high capacity utilization and operational efficiency across 16 diverse global facilities. Managing risks associated with plant turnarounds, equipment maintenance, and process safety. Ensuring product quality and consistency.

Severity #

Medium/High. Impacts production costs, output, safety, and customer satisfaction.

Likelihood #

Medium. Inherent in complex manufacturing operations.

Trend #

Stable. Ongoing focus area.

Mitigation Strategies #

• Investment in maintenance Capex (USD 78M in 2024).
• Focus on asset optimization and operational excellence (strategic priority).
• Use of advanced technologies (online monitoring, data mining, AI pilot).
• ISO certifications (9001, 14001, 45001, 50001).
• Robust Quality Management System (QMS).
• Continuous improvement initiatives (e.g., energy audits leading to electrification projects).
• Process Safety Management (PSM) elements like Process Hazard Analysis.

Control Effectiveness #

Stated improvements in HHCR plant reliability. Digital transformation initiatives enhance monitoring. Internal Audit function provides oversight.

Potential Financial Impact #

Impacts production costs (per-tonne), output volumes (revenue), potential downtime costs, repair costs, quality-related claims.

Quantitative Metrics/YoY Changes #

• Capacity Utilization figures provided.
• Energy savings identified through audits (e.g., 60,000 GJ/year at Hamilton).
• R&D expenditure at ₹638 Mn suggests focus on process

Rain Industries Limited - Financial & Operational Analysis (Year Ended Dec 31, 2024) #

Overview and Business Context #

Rain Industries Limited (RAIN), celebrating its 50th anniversary in 2024, operates as a diversified global industrial company with three primary business segments: Carbon, Advanced Materials, and Cement. The company has evolved from its origins in Indian infrastructure and cement manufacturing to become a significant global player, particularly in the Carbon segment (Calcined Petroleum Coke - CPC, Coal Tar Pitch - CTP) and increasingly in Advanced Materials derived from carbon byproducts and petrochemicals. The Cement segment remains a key producer in South India. RAIN emphasizes its integrated global operations across 16 facilities on three continents, a flexible supply chain, and a strategy focused on upcycling industrial byproducts.

Consolidated Financial Performance (2024 vs. 2023) #

• Revenue: Consolidated revenue from operations declined by 15% to ₹153,744 million in CY 2024 from ₹181,078 million in CY 2023. This decrease was primarily driven by lower average price realizations across all segments, partially offset by increased volumes in the Carbon segment and appreciation of USD/EUR against INR.
• Operating Profit (Adjusted): Adjusted operating profit decreased to ₹14,981 million (9.7% margin) in CY 2024 from ₹20,090 million (11.1% margin) in CY 2023. The decline reflects margin compression due to a lag in the alignment of raw material costs with falling finished product prices, coupled with higher operating costs.
• Net Result (Adjusted): The Group reported an adjusted net loss attributable to owners of ₹4,419 million in CY 2024, a significant downturn from an adjusted net profit of ₹1,526 million in CY 2023. Consequently, adjusted loss per share stood at ₹13.14 compared to earnings per share of ₹4.54 in the prior year. Reported net loss was ₹5,643 million.
• Cash Flow: Despite the net loss, the Group generated positive free cash flow, attributed mainly to a reduction in working capital. This enabled strategic debt repayment.
• Dividend: An interim dividend of ₹1 per equity share (50% on face value ₹2) was declared and paid for CY 2024, consistent with the previous year.

Key Financial Ratios (Consolidated) #

• Interest Coverage Ratio declined significantly due to lower operating profit and higher borrowing costs.
• Current Ratio decreased, mainly due to an increase in the current portion of non-current borrowings.
• Net Debt to Equity Ratio improved to 0.98 from 1.18 in CY 2023, reflecting debt repayment.
• Return on Net Worth turned negative (-7.4%) compared to 2.0% in CY 2023, reflecting the net loss.

Segment Performance Analysis (2024 vs. 2023) #

Carbon Segment #

• Revenue: Decreased by 20% to ₹106,575 million, despite a 3.6% increase in sales volume (2.40 MnT). The decline was driven by a 23% drop in average blended realization due to lower market prices.
• Operating Profit: Margin compressed to 11.6% from 13.2% (₹12,332 Mn vs. ₹17,521 Mn) due to the lag in raw material cost resets.
• Key Development: Relaxation of GPC/CPC import restrictions in India allowed for increased capacity utilization at Indian plants and the reactivation of the global blending strategy, expected to normalize margins going forward. The segment contributed ~70% of consolidated revenue.

Advanced Materials Segment #

• Revenue: Increased by 4.5% to ₹33,786 million, driven by a 14% volume increase (0.29 MnT) primarily in chemical intermediates and resins, offsetting an 8% decrease in realization.
• Operating Profit: Margin improved to 7.6% from 4.7% (₹2,571 Mn vs. ₹1,509 Mn) due to higher volumes and Euro appreciation. Performance benefited from stabilized operations at the HHCR plant in Germany.
• Key Developments: Introduction of ISCC PLUS certified NOVARES® eco line and expansion of portfolio catering to niche applications.

Cement Segment (India) #

• Revenue: Decreased by 19% to ₹12,312 million, due to an 8% decline in price realization and a 12% drop in sales volume (2.85 MnT). Capacity utilization fell to 71% from 80%.
• Operating Profit: Margin significantly decreased to 0.6% from 7.0% (₹71 Mn vs. ₹1,070 Mn) due to lower realizations and higher operating costs amidst market consolidation.
• Outlook: Expected improvement driven by anticipated growth in Indian infrastructure spending, rural demand, and cost optimization from captive solar power. PWD approval in Tamil Nadu provides market access.

Standalone Financial Performance (RIL - Holding Company) #

• Revenue: ₹1,414.62 million (primarily from shared services, sale of duty scripts, dividends, and interest).
• Net Profit: ₹389.45 million.
• Key Role: Acts as a holding company, provides shared services (accounting, legal, HR, IT, finance) to subsidiaries, and holds investments.

Strategic Priorities and Risk Management #

• Strategic Pillars: Enhancing supply chain resilience, Innovation leadership (sustainable solutions, advanced materials), Capacity & operational excellence, Cost excellence, and Strengthening ESG commitment. Management emphasized adaptability, flexibility (sourcing, logistics, technology), cost competitiveness, and strong stakeholder relationships as key resilience factors.
• Risk Management: The company identifies key risks including market volatility (prices, demand), raw material availability/cost, regulatory changes (environmental, trade), geopolitical disruptions, operational hazards (safety), talent management, and cybersecurity. Mitigation strategies include diversification, global blending, cost control, long-term supplier agreements, robust safety protocols (OSHA adoption group-wide), and hedging (FX). The Board and dedicated committees (Risk Management, Audit) oversee risk.
• Auditor’s Emphasis & Key Matters: The auditor’s report includes an Emphasis of Matter regarding uncertainties related to regulations/sanctions stemming from the Russia-Ukraine situation (Note 55). Key Audit Matters highlighted were the impairment assessment of Goodwill (Consolidated) and Investments in Subsidiaries (Standalone), reflecting the significant judgment involved in forecasting cash flows, discount rates, and growth rates used in valuation models. A non-cash goodwill impairment charge of ₹7.3 Bn was recognized in CY 2023.

Capital Structure and Allocation #

• Debt: Consolidated net debt decreased to US$773 million as of Dec 31, 2024. Major debt repayments start from October 2028, with US$44 million due in April 2025. The company maintains a mix of secured notes (7.25% due 2025, 12.25% due 2029), term loans, and revolving credit facilities across various subsidiaries, secured by assets and guarantees.
• Capital Expenditure (Capex): CY 2024 Capex was US$78 million, primarily for maintenance and plant turnarounds, indicating reduced expansionary spending post recent investments.
• Research & Development (R&D): Expenditure was ₹638 million in CY 2024, focusing on new materials (biocarbon, battery anodes), process efficiencies, and sustainable feedstocks.

Governance and ESG #

• Governance: The Board comprises 7 Directors (4 Independent, including Chairman), meeting SEBI LODR requirements. Committees (Audit, NRC, RMC, SRC, CSR, STC)

Rain Industries Limited - Financial Analysis (CY 2024) #

Performance Overview #

• Financials: Consolidated revenue from operations was ₹153,744 million (down 15% YoY). Net loss was ₹5,642.69 million. Adjusted net loss attributable to owners was ₹4,419 million. Consolidated EBITDA was ₹14,981 million. Adjusted loss per share was ₹13.14.
• Operational Drivers: Performance impacted by realignment of finished product pricing and raw material costs. Geopolitical events affected logistics. Relaxation of GPC/CPC import restrictions in India allowed for increased capacity utilization in the Carbon segment.
• Segment Contribution: Carbon (70%), Advanced Materials (22%), and Cement (8%).
• Dividend: Interim dividend of ₹1 per equity share declared and paid.

Segment Performance Analysis #

Carbon #

• Revenue: ₹106,575 million (down ~20% YoY).
• Volumes: Increased by 3.6% YoY.
• Realization: Decreased by 23% YoY.
• Profitability: Adjusted EBITDA decreased by ₹5,234 million YoY.
• Key Developments: Relief from GPC/CPC import restrictions in India.

Advanced Materials #

• Revenue: ₹33,786 million (up 4.5% YoY).
• Volumes: Increased by 14% YoY.
• Realization: Decreased by 8% YoY.
• Profitability: Operating margin improved to 7.6% from 4.7%.
• Market Factors: Muted demand for CARBORES®, slower PETRORES® growth, HCR raw material shortages. ISCC PLUS certified products launched.

Cement #

• Revenue: ₹12,312 million (down 19% YoY).
• Volumes: Decreased by ~12% YoY.
• Realization: Decreased by 8% YoY.
• Profitability: Operating margin decreased to 0.6% from 7.0%.
• Capacity Utilization: Averaged ~71%.
• Key Developments: Increased use of fly ash, solar energy integration (15% of plant energy consumption), PWD approval obtained for supply in Tamil Nadu.

Financial Health & Capital Management #

• Liquidity & Debt: Net debt stood at US$773 million. Debt-Equity ratio reportedly improved. Interest Coverage Ratio decreased. Current Ratio decreased. Major debt repayments are scheduled post-2028. Cash and cash equivalents were reported at US$179 million.
• Capital Expenditure: Approximately US$78 million was spent on maintenance capex and plant turnarounds.
• R&D Investment: R&D expenditure was ₹638 million.

Strategic Priorities & Outlook #

• Stated Priorities: Enhancing Supply Chain Resilience, Innovation Leadership, Capacity & Operational Excellence, Cost Excellence, Strengthening ESG Commitment.
• Management Outlook: Cautious optimism for 2025. Focus on cost competitiveness and optimizing cost structures.

Risk Management #

• Key identified risks include market volatility, raw material availability and cost fluctuations, geopolitical disruptions, regulatory changes, decarbonization policies, talent management, cybersecurity, and operational health & safety.
• Mitigation strategies involve supply chain diversification, flexible production/logistics, cost control, R&D, hedging, robust internal controls, and continuous monitoring.

ESG Highlights #

Environmental #

• Generated 1.04 Mn MWh from Waste Heat Recovery (WHR), avoiding 0.42 Mn tCO2e emissions. Generated 0.03 Mn MWh from solar. Planted 52,900+ trees.

Social #

• Achieved an OSHA TRIR of 0.13 (Group-wide). Delivered 56,700+ employee training hours. CSR expenditure reported at ₹187 million.

Governance #

• Board composition features an Independent Chairman and over 50% Independent Directors. Established Code of Conduct and Whistle Blower Policy.

Forward Outlook #

Future Projections and Guidance #

Management Guidance and Assumptions #

• Outlook: Cautious optimism for 2025, shifting focus to leveraging recent investments and maintaining fiscal responsibility.
• Carbon Segment: Return to normal margins expected after GPC/CPC import restriction relaxation in India.
• Advanced Materials Segment: R&D investments in energy storage materials and sustainable resins expected to drive growth.
• Cement Segment: Significant demand growth expected, driven by Indian infrastructure spending.
• Cost Management: Continued emphasis on cost competitiveness and efficiency improvements.
• Assumptions: Sustained demand for aluminium, government infrastructure spending in India, successful ramp-up of Indian Carbon plants, effective cost control, and stability in raw material sourcing.

Market Growth Forecasts #

Carbon #

• Demand supported by global growth in primary aluminium, driven by EVs, aerospace, and automotive.
• Opportunities in emerging applications like battery anodes.

Advanced Materials #

• Growth anticipated in energy storage, specialty chemicals, coatings, and potentially the US pure monomer resin market.

Cement #

• Strong growth anticipated in the South Indian market, driven by urban housing demand, low per capita consumption, and government infrastructure spending.

Planned Strategic Initiatives #

Supply Chain #

• Strengthen sourcing diversity and logistics resilience.

Innovation #

• Advance R&D in sustainable solutions, battery anode materials, and next-gen industrial applications.

Operational Excellence #

• Maximize asset utilization, enhance cross-segment cooperation, and improve plant reliability.

Cost Excellence #

• Drive process efficiencies, strategic resource allocation, and maintain stringent cost discipline.

ESG Commitment #

• Increase use of renewable/recycled materials, advance energy transition projects, expand beneficial use of byproducts, and pursue GreenCo certifications.

Market Development (Cement) #

• Leverage PWD approval in Tamil Nadu to supply government infrastructure projects.

Capital Expenditure Plans #

• Reduced capital expenditure anticipated over the next 3-5 years.
• Focus will be on leveraging recent investments.
• Ongoing maintenance CAPEX and plant turnarounds continue.
• Specific projects include R&D plant in Canada and steam electrification project in Canada.

Efficiency Improvement Targets #

Energy #

• Target energy use reduction in the Carbon segment.
• Continued focus on energy efficiency across all segments.

Process #

• Enhance CPC yield, optimize raw material blending, improve plant throughput and reliability, and increase fly ash usage.

Cost #

• Lower per-tonne production costs, reduce logistical costs, and implement group-wide cost control measures.

Potential Challenges and Opportunities #

Challenges #

• Market Volatility: Unpredictable commodity pricing and demand fluctuations.
• Geopolitical Risks: Conflicts impacting logistics, raw material sources, and energy costs.
• Raw Material Competition: Increased demand for raw materials from new sectors.
• Regulatory Landscape: Evolving environmental regulations and compliance costs.
• Economic Conditions: High inflation and potential recessionary pressures.
• Industry Consolidation: Increased competition.

Opportunities #

• India Operations: Full utilization of Carbon plants and strong domestic cement demand.
• Global Blending Strategy: Optimized raw material costs and global capacity utilization.
• Innovation & New Markets: Growth in battery anode materials and expansion of sustainable product lines.
• Operational Efficiencies: Continued cost reduction initiatives and benefits from technological upgrades.
• Sustainability Leadership: Leveraging WHR, solar energy, and byproduct upcycling.

Scenario Analysis and Sensitivity #

Goodwill Impairment #

• Annual impairment test uses a discounted cash flow model.

Sensitivity #

• Discusses the sensitivity of Carbon Calcination and Carbon Distillation CGUs to changes in discount rates and net operating cash flows.

Other #

• Management acknowledges uncertainties and emphasizes adaptability.
• Financial risk management section includes sensitivity analysis for interest rate risk and currency risk.

Financial Analysis Report: Rain Industries Limited (CY 2024) #

Auditor’s Opinion and Qualifications #

• Standalone & Consolidated Financial Statements: Unqualified opinion from S.R. Batliboi & Associates LLP, stating a true and fair view in conformity with Indian Accounting Standards (Ind AS) and the Companies Act, 2013.
• Emphasis of Matter: Attention drawn to uncertainties related to regulations (including sanctions) arising from the Russia-Ukraine situation (Note 38 Standalone, Note 55 Consolidated). This does not modify the auditors’ opinion.
• Internal Financial Controls (IFC): Unqualified report stating adequate IFC maintained and operating effectively. An exception noted regarding the audit trail feature.
• Secretarial Audit: No qualifications, reservations, or adverse remarks in Secretarial Audit Reports.
• Overall: No qualifications, reservations, or adverse remarks were noted in the Statutory Auditors’ reports or the Secretarial Auditors’ reports.

Key Accounting Policies and Changes #

• Basis of Preparation: Prepared under Ind AS on a going concern basis, using historical cost (except for certain financial instruments and defined benefit obligations). Functional and presentation currency is INR.
• Key Policies: Significant policies cover revenue recognition (Ind AS 115), Property, Plant & Equipment, Intangible Assets, Goodwill, Leases (Ind AS 116), Financial Instruments, Inventories, Employee Benefits, Foreign Currency Translation, Income Taxes, and Consolidation Principles.
• Changes in CY 2024: Amendments to Ind AS 12, Ind AS 1, and Ind AS 8 adopted. These had no material impact on the financial statements but affected accounting policy disclosures.

Internal Control Effectiveness #

• The Board’s Report and Directors’ Responsibility Statement affirm the existence, adequacy, and operating effectiveness of internal financial controls.
• The Statutory Auditors’ Report confirms that the Company maintained adequate IFC concerning financial statements and that they operated effectively.
• An exception identified where the audit trail feature in the accounting software was not enabled for direct database changes.
• Company utilizes SAP ERP, an in-house internal audit department, and various policies to support its control framework. Audit Committee reviews internal audit reports quarterly.

Regulatory Compliance Status #

• Board’s Report, Secretarial Audit Reports, and Secretarial Compliance Report indicate compliance with major applicable laws.
• Annual Secretarial Compliance Report confirms compliance with SEBI Regulations and circulars.
• Corporate Governance report affirms compliance with mandatory LODR requirements.
• No penalties or strictures by Stock Exchanges, SEBI, or other statutory authorities related to capital markets were reported. No instances of fraud were reported by auditors.

Legal Proceedings and Potential Impact #

• Contingent Liabilities: Primarily relate to Income Tax demands under appeal, disputed Wheeling Charges, and disputed Customs Duty, Sales Tax, Service Tax, and Excise Duty matters.
• Management Assessment: Management believes its position in these disputes is likely to be upheld and does not expect the outcomes to have a material adverse effect on the Group’s financial position or operations. No provisions have been made for these contingencies.
• Other: No proceedings under the Insolvency and Bankruptcy Code, 2016, were reported.

Related Party Transactions (RPT) #

• Policy & Approval: Company has an RPT policy. Transactions conducted on an arm’s length basis and in the ordinary course of business. Prior approval obtained from the Audit Committee and Board.
• Nature of Transactions: Include revenue from shared services, sale/purchase of goods, lease of premises, reimbursement of expenses, dividend payments/receipts, managerial remuneration, CSR expenditure, and corporate guarantees.