Angel Broking - Metal Sector - Result Analysis - 3QFY2013

1 view

Skip to first unread message

Rajesh Desai

unread,

Feb 22, 2013, 11:55:51 PM2/22/13

Dear All,

Forwarding you the Result Analysis on Metal sector for 3QFY2013.

Most of the companies under our coverage reported a disappointing top-line performance during 3QFY2013. Among steel players SAIL and Tata Steel saw a net sales decline of 0.9% and 3.0% yoy, respectively, whereas JSW Steel reported a 5.3% yoy improvement in net sales. All the non-ferrous players reported an increase in net sales on the back of higher volumes; however, their top-line growth was lower than expectations. Among the miners, except for Coal India, all other companies’ top-lines declined and their volumes were below our estimates. Among the steel companies, SAIL reported a 28.0% fall in operating profits due to higher labor costs and other expenses. JSW Steel’s EBITDA grew 4.9% yoy which was in line with increase in sales. In the non-ferrous sector, except for Hindustan Zinc (HZL) and Nalco, all the remaining companies reported a fall in operating profits on the back of lower realizations and rising costs. Among mining companies, both Coal India and NMDC faced severe margin pressures during the quarter. NMDC’s margins were hit by lower volumes while Coal India’s EBITDA declined by 4.3% yoy despite a 12.9% growth in net sales due to higher power and fuel costs and other expenditure.

Kindly click on the following link to view the Report.

Metal sector - Result Analysis - 3QFY2013

If you have any Stock related queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advi...@angelbroking.com. For Non-Research Queries, kindly contact Feedback Team on (Area STD Code) 33551111 or mail at feed...@angelbroking.com

With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6^th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6865
Website : www.angelbroking.com

Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.