MOIL Q3 Results Review - Sequentially Lower Earnings But Operating Leverage Help Sustain Margins: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.MOIL Ltd. reported Q3 FY24 net sales at Rs 3 billion plus 1.4%/-12% YoY/QoQ (2% above estimate). Adjusted Ebitda for the quarter was Rs 894 million plus 62%/-7% YoY/QoQ (10% below estimate). The sequential drop in earnings was primarily driven by lower Manganese ore prices during the quarter. The blended realisation at Rs 8,301/tonne was higher by 16% YoY but fell 8.3% QoQ; 5% below our estimate. Sales volumes increased +16% YoY to 0.34 million tonne but fell 4.7% QoQ. Ebitda/tonne reported at Rs 2,600/tonne plus 40%/-2.6% YoY/QoQ was 10% below our estimate due to lower realisations. Segment revenue from power sales was reported at Rs 36 million, falling 17%/51% YoY/QoQ. MOIL registered the highest production of electrolytic manganese dioxide during nine months FY24, recording a growth of 30% YoY. EMD is a 100% import substitution product, used mostly for pharmaceuticals and battery manufacturing. MOIL’s Q3 FY24 earnings were negatively impacted by lower realisations partially offset by higher volumes and lower cost of production..The stock currently trades 7.3 times FY26 Ebitda, a significant premium to its long-term average of 5 times. We value MOIL at 6 times FY26E Ebitda to arrive at a revised target price of Rs 304/share (Rs 302/share earlier). Downgrade to 'Hold'..Click on the attachment to read the full report:.IFB Industries Q3 Results Review - Margin Improvement Needs To Be Monitored; Upgrade To Reduce: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

MOIL Q3 Results Review - Sequentially Lower Earnings But Operating Leverage Help Sustain Margins: Systematix

MOIL reduced prices of ferro-grade, silico, fines, and chemical grade MnO by 3%-6% over the quarter.

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