Metals, Mining Q1 Review- Weak Results On Account Of Lower Sales Volume, Drop In Metal Prices: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Financial Performance For aluminium companies under coverage: Nalco’s revenue/Ebitda/profit after tax missed our estimates and dropped by 16%/32%/40% YoY and by 13%/22%/33% QoQ led by a drop in the average London Metal Exchange aluminium prices which declined by 22%/5% YoY/QoQ in Q1 FY24 and lower-than-expected alumina sales.  Hindalco Industries Ltd.’s revenue/Ebitda/profit after tax dropped by -9%/-27%/-40% YoY and de-grew/grew by -5%/-2%/+2% QoQ led by a drop in the average LME aluminium prices. LME aluminium prices declined by 22%/5% YoY/QoQ in Q1 FY24, which were partially offset by higher-than-expected metal shipments (Copper and Aluminium shipments beat our estimates) which led to beat on our estimates..For steel companies under our coverage: Ebitda for both Steel Authority of India Ltd. and Tata Steel Ltd. declined by 28%/44% and 65%/28% YoY/QoQ respectively, led by lower sales volume in the quarter and drop in hot rolled coil prices (down 15% YoY/ 1% QoQ). SAIL’s Ebitda drop was in line with our expectation. At Tata Steel, better-than-expected Ebitda at Indian operations led to beat against our estimates. .For Coal India: Revenue grew by 3% YoY led by higher sales volume, which was partially offset by lower average selling price on account of lower e-auction prices. Ebitda/profit after tax declined by 14%/10% YoY respectively led by higher employee costs. On a QoQ basis, revenue declined by 6% as sales volume remained flat QoQ but ASP declined by 6% on account of lower e-auction prices. Ebitda was not comparable as the company took provision towards employee expenses in Q4 FY23.For APL Apollo Tubes Ltd.: Revenue grew by 32%/3% YoY/QoQ but missed ours and consensus estimates by 2% led by lower-than expected sales realization. Ebitda was up 58% YoY but declined by 5% QoQ, missing our and consensus estimates due to QoQ decline in Ebitda/tonne across value added product and general products. For JTL Industries Ltd.: Revenue/Ebitda/profit after tax grew by 37%/131%/110% YoY led by 52% increase in sales volume. On a QoQ basis, revenue stood in line with our estimates but Ebitda/profit after tax missed our estimates and de-grew by 33%/31% led by inventory loss on account of fall in secondary steel prices..Click on the attachment to read the full report:.Infra-Road Q1 Results Review – Robust Order Book To Drive Growth; Outlook Positive: Axis Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Metals, Mining Q1 Review- Weak Results On Account Of Lower Sales Volume, Drop In Metal Prices: Axis Securities

China’s domestic demand pick up was weaker than expected.

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