Rain Industries - An oversold de-leveraging play


(vikas sinha) #382

The next board meeting of Rain Industries is to be held on August 14, 2018 for Quarterly Results

https://www.moneycontrol.com/company-facts/rainindustries/board-meetings/RC12#RC12


(amolk) #383

https://www.hellenicshippingnews.com/new-pollution-control-groups-seen-capping-chinas-aluminum-output/


(GSrikan) #384

Looks like management is seriously focusing on advanced material division as next growth engine. Got to see how successful with this effort.

Disc: invested


(amolk) #385

Supreme court has banned the import of Pet Coke. Rain Industries won’t be able to import the pet coke. Does anyone know what is the impact?


(vikas sinha) #386

Yes, and No, mostly No impact!


(mohinish) #387

Not sure about this. I found this circ on ET
“It is quite clear that a consensus decision has been taken that the use of imported pet
coke all over the country may be permitted only in the following industries: Cement,
Lime Kiln, Calcium Carbide and Gasification. It is statedbf4022e0-6030-4c67-b7ff-181eb307431f.pdf (140.5 KB)
that this would be in
compliance with the WTO norms and these industries may be permitted to import pet
coke for use as a feedstock or in the manufacturing process and not as a fuel.”


(amolk) #388

Yes, that’s where I am also getting confuse. Rain BSE announcement says…

The Company’s Wholly Owned Subsidiary RAIN CII Carbon (Vizag) Limited, India uses Green
Petroleum Coke as “Feedstock” for producing “Calcined Petroleum Coke” used by the aluminium
smelters, steel manufacturers and other players. Neither the Company’s Subsidiary nor its customers use
“Green Petroleum Coke” or “Calcined Petroleum Coke” as “Fuel” or as a substitute to Coal. Further,
RAIN CII Carbon (Vizag) Limited fully complies with the best environmental standards. Accordingly,
the Company’s Subsidiary RAIN CII Carbon (Vizag) Limited would approach the Hon’ble Supreme
Court of India to seek a clarification regarding import of Pet Coke.
Source: Bseindia.com

Why would Rain approach Supreme Court if no impact?
Also the below video on Youtube explains Rain Industries: Impact of Supreme Court judgment on Pet Coke Ban. As per the author, Rain is lobbying to get the exemption and won’t be able to import PET Coke until Supreme court exempt the carbon industry.

Unlike Cement who uses Pet coke as fuel, Rain uses Pet coke as a feedstock so very suprise to see import ban for them.
What’s the truth??


(sarmams) #389

I feel, as mentioned in the Court order as well as Rain/Goa carbon clarification submitted to exchanges, where ever Pet Coke is being used as feed stock and not as a substitute for coal to be used as fuel, import ban may not be applied. And thats the reason, both the companies are seeking clarification from Supreme Court. And, if I remember correctly, clarification of usage of petcoke in Aluminum industry to be submitted by October 2018 after conducting a detailed study. We can have more clarity on Aug 14 in conf call.

Disc- Invested from lower levels and added further in last 30 days.


(vikas sinha) #390

Analyst / Investors Call on the Unaudited Financial Results for the Second Quarter ended June 30, 2018 is scheduled on Tuesday, the August 14, 2018 at 17:30 Hrs (IST).


(adeepsandhu) #391

The results look good. Would request the experts for their views


(Akansha17) #392

Mutual Fund holding of Rain Industries has shown a decline in the month of July’18

Source : https://www.rupeevest.com/Mutual-Fund-Holdings/100339


(tbhavesh) #393

Historically, when MFs have sold, Rain price has shot up. So good for all small share holders…


(vikas sinha) #394

The difference is 99 shares! :crazy_face:


(vikas sinha) #395

First look commentary, definitely non-expert, sorry!

YoY:
Topline growth = 41%, even after 50 Cr decrease in non-operating income!
PBT and PAT = almost 100% increase!
Margins grow of course, since no exceptionals logged!


(vikas sinha) #396

A general comment on Carbon impact of aluminium (AL) business.

How do you think Iron and steel are produced, in blast furnaces?
Imagine how polluting such industries are.
Copper? think Sterlite in thoothkudi.
Selected Short List of such industries are discussed here:
https://www.sciencedirect.com/science/article/pii/S0306261915014464

By contrast, ALCAN, biggest AL producer has aimed to get carbon-neutral AL, by:

  • green sourced energy only since electricity is biggest cost of production. This is already the case at production facilities, 95% are sited next to power plants. Hindalco oldest plant at Renukoot an example, using hydropower.

  • Advantage of using AL over heavier metals, reduces the overall impact. Think transport! Already it is impossible to meet emission control rules in developed countries without AL body cars! Also to improve battery range for electric cars.

Elysis process is a small joke. Apple holds a ~5% minor stake only. People have tried this before, like for decades now. It is expensive, OK to make phone parts that too good publicity stunt for Apple.


(vikas sinha) #397

Rain Industries Limited Earnings Presentation on Unaudited Financial Results for the second quarter ended on June 30, 2018

Press Release on the Unaudited Financial Results (Standalone, Consolidated and Segment) for the second quarter ended on June 30, 2018


(amolk) #398

Anyone attended investor conference? If can you please share the details?


(sarmams) #399

I have found this summary of yesterday conf call on net… I haven’t attended the call…But, very nicely summarized by the author (twitter handle: elliotwave03)…
Rain Industries - Q2CY18 Concall Summary.pdf (214.3 KB)


(Rahul B) #400

Pet coke ban :- https://www.bseindia.com/xml-data/corpfiling/AttachLive/8b1f03ea-8f3d-4bfb-9d52-929b6e59fcf6.pdf