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Nirmal Bang is inviting you to a Zoom webinar.
When: Jul 14, 2021 08:45 AM India
Topic: Morning Market Update
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_nHSMvpEzS-26X3MkwjtGeA
After registering, you will receive a confirmation email containing information about joining the webinar.
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Welcome! You are invited to join a webinar: Morning Market Update. After registering, you will receive a confirmation email about…
*Tata Metaliks (TML) 1QFY22 results first cut: Record EBITDA due to record Pig iron realisation and sales*
*_CMP: Rs1202 | Mcap: Rs37.95bn | Rating: BUY_*
*Revenue:* Rs 6bn, +187% yoy; -9% qoq and 7% above our estimates; Gains of robust pig iron realisations and record sales partially offset by lower DI pipe volumes
*PI sales* volume: 89kt, +177% yoy; +11% qoq due to 17kt of exports this quarter and Realisation at Rs 42,487; +52% yoy,+5% qoq due to a combination of multiple price hikes.
*DI pipe* sales volume: 50kt, +84% yoy; -33% qoq was impacted by pandemic led labor restrictions at plant and Realisation at Rs 45,100; +1% yoy, flat% qoq. Realisations for the new DI pipe order has been seeing 25% hike due to stromg demand
RM cost/tonne: Rs21,722; +13% yoy and flat% qoq due to Iron ore cost inflation partly offset by reduced prices of Third party Coke and captive coke
*EBITDA:* Rs 1.54bn; +1400% yoy; +7% qoq; EBITDA margins of 25.5% vs 5% yoy; 22% qoq due to robust pig iron spreads and sales; *PI EBITDA/t: Rs10,553 vs Rs8,000 qoq *
PAT: Rs947mn; vs. loss of Rs124mn yoy; +26% qoq
*Order book:* 14months
*Expansion projects:* New Coke oven is running at full utilisation. *DI pipe expansion will be commissioned in 4QFY22.*
*Our view:* We believe that TML will continue to outperform in 2QFy22 with higher DI pipe volumes partially offset by higher RM cost. 2HFY22 will see some pressure pof high coking coal prices which should be majorly offset by higher realisation of DI pipe on new orders and power cost benefits. We continue to remain positive on TML.
*_CMP: Rs1202 | Mcap: Rs37.95bn | Rating: BUY_*
*Revenue:* Rs 6bn, +187% yoy; -9% qoq and 7% above our estimates; Gains of robust pig iron realisations and record sales partially offset by lower DI pipe volumes
*PI sales* volume: 89kt, +177% yoy; +11% qoq due to 17kt of exports this quarter and Realisation at Rs 42,487; +52% yoy,+5% qoq due to a combination of multiple price hikes.
*DI pipe* sales volume: 50kt, +84% yoy; -33% qoq was impacted by pandemic led labor restrictions at plant and Realisation at Rs 45,100; +1% yoy, flat% qoq. Realisations for the new DI pipe order has been seeing 25% hike due to stromg demand
RM cost/tonne: Rs21,722; +13% yoy and flat% qoq due to Iron ore cost inflation partly offset by reduced prices of Third party Coke and captive coke
*EBITDA:* Rs 1.54bn; +1400% yoy; +7% qoq; EBITDA margins of 25.5% vs 5% yoy; 22% qoq due to robust pig iron spreads and sales; *PI EBITDA/t: Rs10,553 vs Rs8,000 qoq *
PAT: Rs947mn; vs. loss of Rs124mn yoy; +26% qoq
*Order book:* 14months
*Expansion projects:* New Coke oven is running at full utilisation. *DI pipe expansion will be commissioned in 4QFY22.*
*Our view:* We believe that TML will continue to outperform in 2QFy22 with higher DI pipe volumes partially offset by higher RM cost. 2HFY22 will see some pressure pof high coking coal prices which should be majorly offset by higher realisation of DI pipe on new orders and power cost benefits. We continue to remain positive on TML.