Rain Industries Limited

Jagan Reddy Nellore

Vice Chairman of RAIN Industries Limited.

Gerard Sweeney

President of RAIN Carbon Inc.; and

T. Srinivasa Rao

Chief Financial Officer of RAIN Industries

80 million

a margin range of $70-90 per ton. This is what provides for our normalized earnings level of $60-80 million per quarter. Post Covid, from early 2021 until the end of 2022, we experienced strong demand th

rs,

articularly in relation to normalized margins. While we have seen higher margins in some quarters, it is crucial to understand that sustained earnings above normalized margins may not always be the

15%

he products? Gerard Sweeney In the short term, the imminent capacity additions, constituting 10-15% of the existing capacity in this region, may pose challenges to the demand- supply equilibrium f

70%

3 and what can we expect in 2024? Gerard Sweeney Our Carbon segment operated in the range of 65-70% during 2023. Our Advanced Materials segment operated at a capacity utilization of 75%. As we na

75%

range of 65-70% during 2023. Our Advanced Materials segment operated at a capacity utilization of 75%. As we navigate through the ebbs and flows of our industry, it is important to acknowledge the

30%

Gerard Sweeney In regard to the update on the HHCR Plant, we are currently operating at about 30% - 40% capacity. With two major suppliers permanently closing their European operations and the on

40%

rd Sweeney In regard to the update on the HHCR Plant, we are currently operating at about 30% - 40% capacity. With two major suppliers permanently closing their European operations and the ongoing

80 Million

ed capex for 2024? Gerard Sweeney We expect the capex for 2024 should be in the range of US $75-80 Million including turnaround costs. This is our normal level of Capex without any major projects. Sar

90%

was closed earlier? With the latest CAQM orders can we expect the capacities to be utilized above 90% plus? If yes, how soon? Jagan Nellore Thanks, Sarang. We are pleased with the relief granted by

1.40 million

m coke import restrictions. The overall limit for import of RPC by Calciners was increased from 1.40 million tons per annum to 1.90 million tons per annum. All Calciners in India would benefit from such inc

1.90 million

he overall limit for import of RPC by Calciners was increased from 1.40 million tons per annum to 1.90 million tons per annum. All Calciners in India would benefit from such increase in limit for i

0.5 million

to India. Further, CAQM has also increased the limit for import of CPC by Aluminium Smelters from 0.5 million tons to 0.8 million tons from Financial Year 2025-26; considering the incremental production of

“Accordingly, RAIN Management will be addressing those questions in today’s call.”

“We called that an “opportunity margin,” where we made margin above our normal $70-90 per ton target.”

“Also, can we expect contribution on the delayed and deferred shipments of Q4CY23 in the coming months?”

“However, our focus will be on restoring our traditional managed margins as we navigate through this inventory clearance phase, presenting a challenge we are eager to tackle in Q2.”

“However, looking ahead over the next couple of years, we anticipate a gradual absorption of this incremental production with the demand arising from the aluminium capacity expansions in India and the Middle East.”

“This forecast underscores a strategic approach to navigating market dynamics while maintaining a vigilant eye on potential opportunities for growth.”

“Sarang What are the capacity utilizations for carbon and advanced materials in CY23 and what can we expect in 2024?”

“We anticipate improved capacity utilization in our CPC plants as we progress through the year, given the recent relief granted by the Hon’ble Commission for Air Quality Management or CAQM from petroleum coke import restrictions in India.”

“Sarang Are there any segments/ products within the advanced materials business that are facing structural headwinds and may need to be reviewed from a business viability perspective going forward?”

“Gerard Sweeney While the Advanced Materials segment faced challenges in the second half of 2023 due to plummeting product prices, we have successfully navigated through this phase and anticipate brighter prospects ahead.”

With me on the call today are

1

With me on the call today are

- Mr. Jagan Reddy Nellore – Vice Chairman of RAIN Industries Limited. - Mr. Gerard Sweeney – President of RAIN Carbon Inc.; and - Mr. T. Srinivasa Rao – Chief Financial Officer of RAIN Industries Limited Following the Earnings Presentation and Management Commentary that we released on February 24, 2024, we have been receiving questions from certain investors and analysts regarding industry developments and the status of our expansion projects. Accordingly, RAIN Management will be addressing those questions in today’s call. Before we begin, management would like to mention during this call, we may touch upon forward-looking statements, which encompass various topics such as performance, trends, objectives, and strategies. Please be aware that these statements are rooted in our current expectations and may be influenced by potential risks and uncertainties. Certain factors could potentially lead to outcomes differing from those predicted by these forward-looking statements. With that, we