Menu

Q1 FY22

Hindalco Industries plans to invest Rs. 15,000 crore in Madhya Pradesh
Business, Editorials, IPO research, Markets, Research - August 25, 2022

ONCG made a profit of Rs. 15205 Cr.

ONCG made a profit of Rs. 15205 Cr.

ONCG reported a standalone profit of Rs 15,205.85 crore for the month of June 2022, up 251% compared to the year-ago period, driven by strong operating performance and top-line growth. The standalone profit in Q1 FY22 stood at Rs 4,334.75 crore. The standalone revenue for the June FY23 quarter grew by 84% to Rs 42,321 crore compared to the corresponding period last fiscal. ONGC had a 91% year-on-year growth in its offshore business at Rs 27,990.4 crore and its onshore business increased by 72% to Rs 14,330.3 crore during the quarter.

Consistent natural gas output

At 1.63 million tons, Oil and Natural Gas Corporation (ONGC) produced 1.7% less oil due to lower output from western offshore. The production decreased by 12.34% in fields run by private businesses. However, compared to April through July 2021, when output was 9.96 million tons, it was only slightly lower during the first four months of the current fiscal, which started on April 1. On August 4, Oil Minister Hardeep Singh Puri tweeted that the trend of diminishing crude oil production had changed. The data from the ministry showed that Vedanta’s Rajasthan block had a lower output than ONGC’s oilfields in Gujarat and Assam.

The natural gas output was nearly steady in July at 2.88 billion cubic metres but was 3.4% higher from April to July at 11.43 bcm. The refineries processed 83.96 million tonnes of crude oil between April and July, operating at 103.87% of their capacity, compared to an operating rate of 92.01% for processing 76.64 million tons. Fuel production increased by 6.23% in July to 21.97 million tonnes and by 11.67% from April to July to 90 million tons.

The company has fixed August 19th, 2022 as the “Record Date” for determining members eligible to receive a final dividend of 3.25 per share (i.e., @ 65%) for the financial year 2021-22.

Valuations:

The EPS stood at Rs. 12.09 for Q1 FY23. The price to book ratio was at 0.73x. The return on assets was at 12.3%. The interest coverage ratio was 24x for June 2021. The EBITDA was at 2.50x. The ROCE and ROE were at 18.0% and 18.2%, respectively. The stock is trading at 3.35x while the five-year P/E ratio is at 7.51x. The scrip closed at Rs.136, up by 1.68% on Wednesday.

 

, , , , 0 Comment
Read More
Easing of risk weights on loans given to MFIs and NBFCs
Banking, Editorials, Equities, Markets, Result Updates - August 24, 2022

DCB Bank’s (DCBB) Q1 FY23 earnings

DCB Bank’s (DCBB) Q1 FY23 earnings:

The PAT for DCB bank was at Rs. 97 cr. in comparison to Rs. 34 cr. from the same quarter a year ago, with a growth of 188%. Total revenue in the June quarter was Rs. 949 Cr., compared to Rs. 920 Cr. in March 2021 and Rs. 846 Cr. in June 2021. There was an 18% growth in advances YOY and a 14% growth in deposits. The Gross NPA as on June 2022 was at 4.21% while the Net NPA was at 1.82 qoq as on June 2022. Both Gross NPA and Net NPA declined sequentially as well as in comparison to last year.

Ratios to improve in the June quarter:

The Provision Coverage Ratio (PCR) was at 69.480 and the PCR without considering Gold Loans NPAs was at 73.39%. The Capital Adequacy Ratio was at 18.47%, with Tier I at 15.44% and Tier ll at 3.03% as per norms. The CASA (Current Account Savings Account) ratio was at 29% in the June quarter compared to 27% in the previous quarter. The savings account balances between 2 lakh and less than 5 lakh rupees had an interest rate of 5.00%, while balances between 5 lakh and less than 10 lakh rupees had an interest rate of 6.00%. On savings account balances between 10 lakh and less than 25 lakh, there is an interest rate of 6.75%. DCB Bank has given a maximum interest rate of 7% on savings account balances between 25 lakh and less than 2 crore. Savings accounts with balances of between 2 crore and less than 50 crore will now earn interest at a rate of 5.50%, while accounts with balances of over 50 crore will now earn interest at a rate of 5.00%.

Due to lower credit costs and better loan growth, gross slippages continued to remain elevated, mainly stemming from the gold portfolio, largely offset by higher recovery and upgrades, resulting in a GNPA of 4.3%. The stress pool continues to remain sticky, but the management expects improving collection efficiency to reflect in better asset quality on the back of a granular and secured portfolio of approximately 95%. With asset quality still stubborn and loan growth looking soft, there is less room for any positive surprise from operating efficiency.

Valuations:

The price to book ratio stood at 0.64x. The return on assets was 0.68%. The interest coverage ratio was 1.22x for June 2021. The return on capital employed was at 6.30% while the return on equity was at 7.37%. The EBITDA was recorded at 14.0x. The (CAR) capital adequacy ratio continues to be strong at 18.47%. The scrip was trading at Rs. 83.1, down by 0.54% on Wednesday.

, , , , 0 Comment
Read More
Business, Equities, Markets, Research Reports - August 23, 2022

Financial Results for Pokarna LTD.

Financial Results for Pokarna LTD. (Q1 FY2023)

Pokarna Ltd has reported an income of Rs. 240.3884 crores during the period ended June 2022 as compared to Rs. 205.2388 crores during the period ended March 2022. The company has posted a net profit or (loss) of Rs. 28.4906 crores for the period ended June 30, 2022, as against a net profit or (loss) of Rs. 20.1066 crores for the period ended March 31, 2022. The EBITDA stood at Rs. 46.02 crores in March 2022, up 107.58% from Rs. 22.17 crores in March 2021. The margins would have been better but for the forex loss of Rs. 6.82 cr on account of restatement of debt drawn for establishing a new unit, which was offset against the forex gain on exports. The net forex loss charged to the P & L account is Rs. 1.65 cr, reported under other expenses.

Business growth remains strong.

The business environment remains challenging. While sequentially there is an improvement, on an overall basis, business continues to face growth hurdles. The revenue growth remains strong on the back of higher offtake and new product launches. We expect sales momentum to be sustained as new units start ramping up production. The operating margins stood at 25% for the quarter. The focus is on improving the capacity utilisation of new quartz units. Supply chain disruptions, port congestion, container unavailability, and rising shipping costs continue to pose a challenge. The exports to the East Coast, though, have smoothened to an extent. The states of Telangana and Andhra Pradesh are found to be home to some of the best quality quartz raw materials. In addition to private label manufacturing, it is distributed and supplied across the globe under the brand name Quantra. The sourcing of the majority of raw material was from captive quarries, which are home to some of the most sought-after colors. The company’s colour palette includes over 75 varieties of granite sourced from India, Ukraine, Madagascar, and Norway. The deep and entrenched relationship with dealers across key regions of operations

Valuations:

Pokarna EPS stood at Rs. 6.49. The Return on Capital Employed was at 2.39%, whereas the Return on Equity (ROE) was at 0.06%. The EBITDA was at 172x and the P/E ratio was at 52.2x. The price-to-book ratio was recorded at 13.2x and the interest coverage ratio was at 0.33x. The scrip was trading at Rs.550, down by 2.90% on Monday.

, , , 0 Comment
Read More
Godha Cabcon & Insulation Reports Q1 2026 Results
Business, Equities, Markets, Research Reports - August 22, 2022

Mold-Tek reported a sale of Rs. 207 crores.

Mold-Tek reported a sale of Rs. 207 crores.

Mold Tek Packaging has reported an almost 80% increase in net profit to Rs 21.71 crore for the June quarter. The total sales were at 207.8 crore, an increase of 55% from the year-earlier period and 16.81% up from Q4 FY22. The profit before tax was Rs. 29 crores and the volume growth was 51.17%. While the inflationary environment continued to impact the margins, the company delivered healthy operating margins of 18% with its focus on IML packs and operational efficiencies across all segments. They have a huge CAPEX of Rs. 125 Cr. planned in FY. 22-23. The EBIDTA was up by 46.84% from June 2021 and 13.59% from Q4 of FY22. The EBIT for the quarter increased by 46.84 % to Rs. 37.3 crore from Rs. 25.40 crores.

Expansion Plans:

As previously stated, the company intends to invest 125 crores in capital expenditures this fiscal year on capacity at its facilities in Hyderabad, Daman, Visakhapatnam, and Kanpur. It has also been decided to set up a second plant in Daman with robotic IML facilities to produce food and FMCG IML containers to meet the growing customer demand in the western region. For the value of a company’s earnings growth, it is very important to consider any dilution of shareholders’ interests. As it happens, Mold-Tek Packaging issued 13% more new shares over the last year. Therefore, each share now receives a smaller portion of the profit.

The company raised equity from QIP and the allottees who have been allotted more than 5% in the QIP are Goldman Sachs Funds—Goldman Sachs India Equity Portfolio (27.61%), Ashoka India Equity Investment Trust PLC (21.24%), Aditya Birla Sun Life Trustee Private Limited A/C (19.30%), ICICI Prudential SmallCap Fund (14.48%) and White Oak India Equity Fund IV (10.62%). Mold-Tek Packaging utilised the net proceeds from the QIP issue for the company’s ongoing and future capital expenditure requirements, working capital requirements, debt repayment, and general corporate purposes.

Mold-Tek Packaging has a weak cash flow relative to earnings, which indicates lower quality earnings, and the dilution means its earnings per share growth is weaker than its profit growth. For the reasons mentioned, we think that an unthinking glance at Mold-Tek Packaging’s statutory profits might make it look better than it is on an underlying level.

Valuation:

The EPS was at Rs. 23.8. for the June quarter, up by 54.82% Q1 from June 2021 and by 17.81% from the Q4 of FY22. The Return on Capital Employed was 22.5%, whereas the Return on Equity (ROE) was 18.2%. The EBITDA was at 24.2x and the P/E ratio was at 43.8x. The price-to-book ratio was 6.62x and the interest coverage ratio was 14.0x. The scrip was trading at Rs.970, down by 0.39% on Monday.

 

, , , 0 Comment
Read More
Bharti Airtel Stock Hits Fresh 52-Week High on Strong Market Momentum
Business, Equities, Markets, Result Updates - August 20, 2022

Bata India reported a 71.82% increase in consolidated net profit of Rs 119.37 crores

Bata India Ltd. posted its highest ever quarterly sales:

Bata India reported a 71.82% increase in consolidated net profit of Rs 119.37 crores for the first quarter, as the shoemaker achieved the “highest ever quarterly sales”. The company posted a net profit of Rs 69.47 crores in June 2021. Its revenue during the June quarter was Rs 943.01 crore, up over three-fold from Rs 267 crore in the pandemic-hit corresponding quarter of FY22. Bata India’s total expenses were at Rs 792.58 crore, up two-fold in Q1FY23 as against Rs 371.61 crore a year ago. During the quarter, the company continued to improve cost structures and increase efficiencies across the company. The digital channel sales momentum was due to three levers: D2C bata e-store, marketplaces, and omni-channel home delivery.

Cost-focus initiatives to drive the quarterly results:

A direct result of focus on key areas of franchise and MBO expansion and digital footprint expansion is seen in the quarterly results.  This is done continuous improvement in portfolio and marketing investments. Moreover, footfalls across retail outlets saw a significant spike, besides sales through digital channels. All the cost-focused initiatives, which have been put in place across multiple work streams, are showing increasing impact this quarter. Bata is witnessing a significant uptick in sales with rising demand for fashionable and comfortable footwear.

They continue to expand their reach through new franchise stores and multi-brand outlets. They have opened 20-plus new franchise stores, taking the total number to over 320, with a strong future pipeline and expanded availability via a distribution channel that continued to scale up to close to 1,100 towns. Almost 60+ stores renovated during the June quarter. Simultaneously, Bata also focused on driving volumes in these inflationary times, which should have an impact in the ensuing period. 

In the face of volatile inflation and geopolitical unrest, they are cost efficient and accordingly planning cost-savings measures across their network, which has reflected in the profitability. They are continuing to flesh out new opportunities across all value chains, which will help them capture the emerging consumer demand efficiently. They continue to be optimistic about the momentum going ahead, driven by innovation, scaling up digital channels, expansion in Tier 3-5 towns, and productivity enhancement in brands and stores.

The Net Promoter Score (NPS), feedback for loyalty for all offline and online channels that Bata services, stood at 70%. It was the continued growth of the sneaker category that led to the growth recovery. The sneaker studio in 125 stores to display up to 300 styles across 9 brands. Bata continued with an expansion drive in tier 3–5 cities. The company continued to expand its distribution business in MBOs across 1100 towns.

Valuations:

The EPS was Rs. 22.7 for the June 2022 quarter. The ROCE was at 8.37%, whereas the ROE was at 5.74%. The EBITDA stood at 33.2x for Q1 FY23. The price to book value was at 13.6x. The P/E was at 84.9x, while the 5 year P/E was at 45.9x for Bata India Ltd. The return on assets was 2.99% for the same quarter. The shares of Bata India Ltd on Friday settled at Rs 1927, up 0.25% from the previous close.

, , , 0 Comment
Read More
Dish TV reported a net profit of Rs. 17.85 crores
Business, Equities, Markets, Result Updates - August 19, 2022

Dish TV reported a net profit of Rs. 17.85 crores

Dish TV reported a net profit of Rs. 17.85 crores.

Dish TV India reported a 64.47% drop in net profit to Rs 17.85 crore in June 2022, compared to Rs 50.24 crore in the previous quarter ended June 2021.The firm reported a net loss of Rs 2,031.99 crore in March 2022 on account of exceptional items, which included impairment charges. The total revenues stood at Rs 642.70 crore during the quarter as against Rs 751.75 crore in the corresponding quarter. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) was Rs. 323.8 Cr.Profit before exceptional items and tax (PBT) was at Rs 41.8 crore as against a loss of Rs 199.3 crore in Q4 FY22.

The total expenses were at Rs 607.56 crore, down 36.35% as against Rs 954.57 crore in the March 2022 quarter. The exceptional items in the results include Rs 203 crores as an impairment charge on intangible assets under development (impairment charge on goodwill acquired from Videocon) and related advances, Rs 1,616.9 crore and Rs 717.7 crore, respectively. The firm recognised Rs. 116.3 crores as a forex variation loss due to the ongoing crisis in Sri Lanka.

Consumer preferences can have a significant impact on a company’s profitability:

Dish TV’s subscription revenues stood at Rs 574.8 crore, down by 16.1% as against Rs 685.2 crore in Q4 FY2022. The subscription revenues during the quarter were lower compared to Q1 FY2021, mainly due to volatile viewing habits, the emergence of the third wave of the pandemic, high inflation, and conservative spending. The advertisement revenue was at Rs 14.8 crore, up 14.5% as against Rs 12.9 crore. The revenue from ‘Additional marketing, promotional fees and bandwidth charges’ was at Rs 39 crore as against Rs 36.2 crore in the previous quarter.

Pay-TV consumer sentiment has been fluctuating between being pampered on content and sometimes being prudent with it. Consumers have been pickier than ever. They are often moving between linear and streaming content, and as a result, restarting their subscriptions less regularly. Dish TV customers’ changing tastes and preferences are working towards leveraging these emerging trends. The net pay-TV subscribers decreased by 257,000 in the June 2022 quarter, compared to a net decrease of 67,000 in the June 2021 quarter. The company closed the quarter with 9.99 million subscribers, including 7.79 million DISH TV subscribers and 2.20 million SLING TV subscribers. The retail wireless net subscribers decreased by 210,000 in the June 2022 quarter, compared to a net decrease of 201,000 in June 2021 and with 7.87 million retail wireless subscribers.

Valuations:

The EPS was Rs. 10.2 for the June 2022 quarter. The ROCE was at 24.9%, whereas the ROE was at 41.1%. The EBITDA stood at 1.49x for Q1 FY23. The price to book value was at 2.25x. The price to earnings ratio was at 2.87x, while the 5 year P/E was at -1.45x for Dish TV India. The return on assets was at 9.50% for the same quarter. The shares of Dish TV India Ltd on Friday settled at Rs 11.70 on the BSE, up 0.70% from the previous close.

, , , , 0 Comment
Read More
Dalmia Bharat Reports Disappointing Q3 Results, Sees Limited Short-Term Growth
Business, Equities, Markets, Research, Research Reports - August 19, 2022

JK Cement to report a net profit of Rs. 163 crores.

JK Cement to report a net profit of Rs. 163 crores.

The company has reported sales of Rs. 2270 crores during the period ended June 2022, as compared to Rs. 2351 crores during the period ended March 2022. The company has posted a net profit of Rs. 163 crores for the period ended June 30, 2022, as against a net profit of Rs. 201 crores for the period ended March 31, 2022. The company has an EPS of Rs. 21.06 for the period ended June 30, 2022 as compared to Rs. 26.03 for the period ended March 31, 2022. The margins are at 17.7% in Q1 FY23 versus 23.5% in Q1 FY22.

Margin expansion at a low cost:

Grey cement volume fell 10% QoQ to 0.31 Cr. MT. The total sales stood at 86% vs. 75% YoY. The volume of putty increased 38% year on year to 5 lakhs. With a QoQ increase in the sales share of putty, blended Net Sales Realization (NSR) firmed up 6% QoQ and rose 7% YOY. The total Opex was up a modest 4% QoQ, mainly on a loss in grey cement and on lower fuel inflation. Thus, blended unitary EBITDA rebounded 16% QoQ to INR 1,101 per MT. The margin for both grey and white segments expanded by 100/250bps QoQ to 17/20% and 20%, respectively, implying EBITDA of INR 900/MT. The UAE subsidiary’s revenue went up 28% YoY to INR 100Cr. As JK Cement split the useful life of its cement power plants into 15-20 year periods, depreciation expense went up 16% QoQ.

 In Q1FY23, healthy pricing recovery in the northern regions, subdued fuel cost inflation, and low cost inventory benefits increased blended unitary EBITDA by 16% QoQ to INR 1,101 per MT as margins in both the grey and putty segments rebounded. While consolidated revenue rose 32% year over year, EBITDA came in flat. JKCE’s central expansion of 4 million MT is on track by Q4FY23. The company plans to further add 6 million MT of grey cement capacity in the central and northern regions by the end of FY25 to brace its distribution reach.

Valuations:

 The stock P/E for JK cement is at 32.5x. With a five-year P/E of 24.8x, the EPS stood at Rs. 85.1. The return on capital employed was 16.6% and the return on equity was 17.4%. The EBITDA was recorded at 15.4x. The ROA was at 6.57% and the price to book ratio was at 4.90x. The scrip closed at Rs. 2736, up by 1.36%.

, , , , 0 Comment
Read More
Hindalco Industries plans to invest Rs. 15,000 crore in Madhya Pradesh
Business, Equities, Result Updates - August 18, 2022

Gujarat Alkalies clocked a net profit of Rs. 220 Cr. in Q1 FY23.

Gujarat Alkalies clocked a net profit of Rs. 220 Cr. in Q1 FY23.

Gujarat Alkalies has reported a total income of Rs. 1134.22 crores during the period ended June 30, 2022 as compared to Rs. 1148.47 crores during the period ended March 31, 2022. The company has posted a net profit or (loss) of Rs. 190.87 crores for the period ended June 30, 2022 as against a net profit or (loss) of Rs. 220.68 crores for the period ended March 31, 2022. They have an EPS of Rs. 25.99 for the period ended June 30, 2022 as compared to Rs. 30.05 for the period ended March 31, 2022.

New partnerships to create new opportunities:

The management is optimistic about their future. The main reason for clocking such good numbers was the market conditions. As far as the caustic soda price is concerned, whether local or international, they think that the price will remain stable, especially due to the demand in the aluminium sector. They have also set up a bio-ethanol plant. Gujarat Alkalies and Chemicals (GACL) has collaborated with NTPC Renewable Energy (NTPC REL) for renewable energy and green chemicals. The Memorandum of Understanding (MoU) is for expanding business opportunities in the areas of sourcing of renewable power to the extent of about 100 MW and jointly working on synthesising green chemicals such as methanol and ammonia for captive use by GACL.

This is a novel initiative between leading CPSE and state government-sponsored companies to support the country’s commitment to achieve renewable energy targets and reduce greenhouse emissions. NTPC REL is a wholly owned subsidiary of NTPC and is incorporated to develop renewable energy projects and parks, including various developments of various green hydrogen energy solutions and battery energy storage solutions in a focused manner.

The plant will be using corn/broken rice as feedstock with eco-friendly technology and will produce 500 KLD of bio ethanol, which will be used for blending in petrol. As by-products from this plant, 135 KTPA of protein-rich animal feed and 16.50 KTPA of corn oil while using corn as feedstock are also expected to be produced.

Valuations:

The stock price to earnings is at 9.16. The 5 year P/E ratio is 9.5 and 3 year P/E ratio is 5.25.The return on capital employed is at 13.5%. The EPS stood at Rs.98.5. Gujarat Alkalies Ltd has an EBITDA multiple of 5.37.The shares of GACL were up by 5.70% to close at Rs. 891 on Wednesday, August 17, 2022.

, , , , 0 Comment
Read More
Gold prices registered a high value as investors considers gold as safe investment in midst of uncertainty in tariff policy
Business, Equities, Markets, Result Updates - August 16, 2022

Muthoot Finance's net profit at Rs. 802 Cr.

Muthoot Finance’s net profit at Rs. 802 Cr. in June 2022, down from Rs. 960 in March 2022.

Muthoot Finance’s net profit was down by 17.4% to Rs 802.01 crore in June 2022, on a 7.6% increase in total income to Rs 2,509.27 crore in Q1 FY23 over Q1 FY22. The net profit and total income in Q1 FY23 decreased 16.48% and 6.31%, respectively, QoQ. The NBFC’s consolidated net profit was down by 15.7% to Rs 824.96 crore on a 5.4% decline in total income to Rs 2,804.32 crore in Q1 FY23 compared to Q1 FY22.

The consolidated profit before tax stood at Rs 1,111.95 crore in the first quarter, down 15.1% from Rs 1,309.85 crore recorded in June 2021. The consolidated loan AUM stood at Rs 63,444 crore in Q1 FY23, increasing 9% from Rs 58,135 crore in Q1 FY22 but down 2% QOQ from Rs 64,494 crore in Q4 FY22. The interest income on average loan assets is at 20.6%, down by 211 bps from the previous quarter. The total number of loan accounts is around 80,90,132, with active customers of around 51,73,166. The average gold loan per branch was 12.167 Cr., compared to 12.461 Cr. from the previous quarter.

The RBI has to approve 150 new branches in India.

Muthoot Finance continued to deliver a stellar performance in the gold loan space, though there is a dip in loan assets during the period; they have achieved a YoY increase of 9% in loan assets at Rs 63,444 crore. The high-frequency indicators suggest a recovery in economic activity with strong urban demand, though rural demand is still stimulating. The management is optimistic about the stable demand conditions for gold loans attached to the huge untapped market opportunity in the gold loan segment. The RBI’s approval for the opening of 150 new branches, combined with recent digital initiatives and the gold loan@home service, will allow them to further expand and increase their customer base.

The very low-interest rate loans have resulted in lower yields during Q1 FY23. The launching of teaser loans was a strategic move taken in Q3 FY22 and enabled them to attract new valuable customers. Certainly, these customers will come back to Muthoot to avail of the high-quality service they offer. An uptrend can be witness in disbursement with 12700 Cr. and efficiency in collection with Rs. 13,200 Cr. in June 2022 when compared to 11200 Cr in disbursement and 10,000 Cr. in the collection from March 2022.

Valuations:

India’s largest gold loan-focused NBFC’s shares was trading at Rs.1041 down by 12.37% on Tuesday. The company’s EPS is Rs. 94.3. The Price to book value is 2.26 times and ROA is at 5.90%. The ROE and ROCE are at 23.6% and 14.2%. The return on average loan assets at 7.24% compared to 7.99% in March 2022. The NIM has also decreased to 13.04% from 14.24 in March 2022. The loan book is believe to grow at a CAGR of 14.5%. As the asset quality management is improved with dominant presence and capital sufficiency, we are bullish on Muthoot Finance.

, , , , 0 Comment
Read More
Sprayking Ltd Announces Stock Split, Rs 50 Cr Rights
Business, Equities, Market News, Markets, Result Updates - August 13, 2022

Sail reported a net profit of Rs. 804Cr.

SAIL reported a net profit of Rs. 804 crore.

SAIL on Wednesday posted a 79% fall in its consolidated net profit to Rs 804.50 crore during the June quarter, dragged by higher expenses. It had clocked Rs 3,897.36 crore in the June period of the 2021-22 fiscal, Steel Authority of India Limited (SAIL) said in a regulatory filing. The company’s total income rose to Rs 24,199.51 crore from Rs 20,754.75 crore in the year-ago quarter. The expenses increased to Rs 23,295.23 crore as against Rs 15,604.07 crore in June 2021.

EBITDA fell to Rs 2,606 crore compared to Rs 6,674 crore in June 2021. The revenue was at Rs 24,029 crore, up 16% year-on-year. The sales volume declined marginally to 3.15 million tonnes (MT) during Q1 of the current fiscal compared to 3.33 MT in June 2021.

Other parameters for the business:
The crude steel output was at 4.33 million tonnes, up from 3.77 MT in the same quarter of the preceding financial year. The sales were down to 3.15 MT as compared to 3.33 MT last year. The first quarter of FY23 saw challenges of higher input costs and serious market demand, both global and domestic, impacting the performance of the company. The high cost of production due to an increase in imported coking coal prices had an impact on the company’s bottom line. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realization.

The first quarter of FY2 had higher input costs and subdued market demand, both global and domestic, impacting the performance of the company. The high cost of production due to high import prices of coking coal had an impact on the bottom line. The decline in global demand and prices for steel had a direct effect on the domestic market and price realisation. SAIL has infrastructure projects to gain momentum, which will boost the demand for their products. They are confident of improved performances in the second half of the current financial year with a significant reduction in the price of imported coal and an uptick in demand.

Valuations:
The EPS for SAIL is Rs. 22.2. The ROE and ROCE were at 25.1% and 24.3%, respectively. The EBITDA ratio is 2.52. While the P/B ratio is 0.62, The P/E ratio is at 3.58 times, whereas the 5 year P/E is at 4.49 times. The scrip closed at Rs.81.6, down by 3.49%.

, , , , , 0 Comment
Read More