Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Q3FY21 Result Preview - Metals & Mining - ICICI Direct

Posted On: 2021-01-12 03:39:13 (Time Zone: Arizona, USA)


For Q3FY21, healthy realisations coupled with subdued operating cost (especially coking coal) is expected to push EBITDA/tonne of steel companies to a multi-year high. During the quarter, average domestic Hot Rolled Coil (HRC) prices were at ~Rs. 46700/tonne, up 19% QoQ, 33% YoY. Furthermore, while during Q3FY21, average coking coal prices were down 1% QoQ on account of inventory lag impact, the reduction in coking coal costs for steel companies is expected to be in the range of US$5-10/tonne. However, in Q3FY21, domestic iron ore prices witnessed a sharp uptick, up ~47% QoQ. The upsurge in iron ore prices is likely to limit the EBITDA/tonne uptick for non-integrated players. The EBITDA/tonne of Tata Steel (standalone operations) is expected to come in at Rs. 19000/tonne (Rs. 12861/tonne in Q2FY21, Rs. 10123/tonne in Q2FY20). Domestic operations of JSW Steel are likely to report an EBITDA/tonne of Rs. 13000/tonne (Rs. 10136/tonne in Q2FY21, Rs. 5598/tonne in Q3FY20). Even on the non-ferrous front, on a YoY basis, zinc and aluminium prices are up 10% and 9%, respectively. On a QoQ, zinc and aluminium prices were up 12% each. The uptick in base metal prices augurs well for the operating margins of non-ferrous players.

Aggregate EBITDA margins to increase QoQ, YoY...

We expect the aggregate topline of coverage companies to increase 10.2% YoY, 10.2% QoQ to Rs. 105887 crore. The aggregate EBITDA of the coverage universe is expected to increase 68.5 % YoY, 35.1% QoQ to Rs. 26689 crore. Aggregate EBITDA margin of the coverage universe is likely to come in at 25.2% (up 873 bps YoY, 464 bps QoQ). The EBITDA/tonne of domestic miner Coal India is likely to come in at Rs. 350/tonne with NMDC expected to report the same at Rs. 2700/tonne. We expect Novelis (Hindalco's subsidiary) to clock a blended EBITDA/tonne of US$490/tonne (Novelis numbers inclusive of Aleris numbers).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Metals_Q3FY21.pdf


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

Q4CY20 Company Update - Mahindra CIE Automotive - ICICI Direct

Event Update - Hindalco - ICICI Direct

EY report launch at BioAsia 2021 - Moving the needle: Healthcare industry in a post-COVID world

Initiating Coverage - Dalmia Bharat Ltd - HDFC Securities Retail Research Desk

Initiating Coverage - Mastek Ltd - HDFC Securities Retail Research Desk

Hindalco Industries - Status quo maintained - ICICI Securities

Tata Motors - India business scaling in the right direction - ICICI Securities

IPO Review - Heranba Industries Ltd

Company Update - Narayana Hrudayalaya - ICICI Direct

Ambuja Cements - Market share sustenance key for rerating - ICICI Securities

ADD on Astral Poly Technik - An 'astr'onomical growth story - HDFC Securities

FMCG Sector Update Report - Divergence narrows; refocus on core - HDFC Securities

Maintain REDUCE on Jubilant FoodWorks - More legs for growth; reflecting confidence on core - HDFC Securities

Torrent Power - Growth acceleration - ICICI Securities

Mahindra CIE Automotive - CY20 performance closes on a strong note - ICICI Securities

Q3FY21 Company Update - V-Guard Industries - ICICI Direct

Quant Pick - Indus Towers - ICICI Direct

Q4CY20 Result Update - Ambuja Cement - ICICI Direct

Q3FY21 Company Update - Nesco Ltd - ICICI Direct

Maintain BUY on Ambuja Cements - Healthy quarter; multiple triggers ahead - HDFC Securities

Heranba Industries Ltd. - IPO - Sound Financials & Promising Outlook Augur Well

India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities

Earnings Wrap Q3FY21: Encouraging quarter, broad based recovery under way!

Shilpa Medicare - USFDA import alert at Jadcherla unit - ICICI Securities

Q3FY21 Company Update - Indian Bank - ICICI Direct

Quant Pick - Torrent Power - ICICI Direct

GE T&D India - Strong cashflow - ICICI Securities

Q3FY21 Result Update - Graphite India - ICICI Direct

Q4CY2020 Result Update - Varun Beverages - ICICI Direct

Q3FY21 Company Update - NBCC Ltd - ICICI Direct

Quant Pick - United Breweries - ICICI Direct

Q4CY2020 Result Update - Nestlé India - ICICI Direct

Q3FY21 Result Update - Time Technoplast - ICICI Direct

Healthy Business Performance Puts ITC Stock Recovery on Track

Gold - Feb 17, 2021 - Reliance Securities

Maintain REDUCE on Nestle India - Steady revenue show; employee cost dents margins - HDFC Securities

Varun Beverages - Q4 CY20 Result and Concall Update - YES Securities

Nestle India - Q4 CY20 Result Update - YES Securities

Reiterate BUY on JMC Projects - Some hits, some misses - HDFC Securities

Varun Beverages - Strong volumes; higher margins - ICICI Securities

Computer Age Management Services - Play on industry AUM growth - ICICI Securities

Nestle India - Just a tad underwhelming (given the high benchmarks expected from Nestle India) - ICICI Securities

NHPC - Earnings robust; projects on track - ICICI Securities

Maintain BUY on ITD Cementation - Gradual recovery shaping up - HDFC Securities

Techno Electric & Engineering - Strong margins, healthy growth outlook - ICICI Securities

Time Technoplast - Outlook upbeat; execution remains key - ICICI Securities



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020