Monday, November 14, 2011

Result Reviews Coal India, RCom, Nalco : 2QFY2012 result review :Angel Broking,

Result Reviews
Coal India
Coal India’s 2QFY2012 results were below our expectation on account of lowerthan-
expected sales volume. Net sales increased by 12.7% yoy to `13,148cr
(slightly below our estimate of `13,774cr), primarily due to increased average
realization, partially offset by the decline in sales volume. Blended average
realization on coal sales increased by 19.0% yoy to `1,403/tonne; however, sales
volume decreased by 5.3% yoy to 94mn tonnes. EBITDA per tonne increased by
56.2% yoy to `293 in 2QFY2012 on account of higher realization. The company’s
EBITDA increased by 47.9% yoy to `2,750cr, representing EBITDA margin of
20.9%. Other income grew by 55.0% yoy to `1,794cr on account of higher cash
balance and increased treasury yield. Adjusted net income grew by 73.1% yoy to
`2,588cr (below our estimate of `3,164cr). The stock is under review currently.

RCom
Reliance Communication (RCom) reported a decent set of numbers for 2QFY2012.
The company registered top-line (including other income) growth of 2.0% qoq to
`5,040cr, driven by 2.1% qoq growth in revenue from the wireless business.
During the quarter, revenue from the wireless business came in at `4,417cr, aided
by 0.5% qoq growth in ARPM to `0.45/min. PAT came in at ``252cr, aided by
whopping other income of `248cr vs. `92cr in 1QFY2012. We maintain our
Neutral view on the stock.

Nalco
Nalco reported its 2QFY2012 results. The company's net sales grew by 8.9% yoy
to `1,584cr (below our estimate of `1,698cr) mainly due to higher realization.
However, raw-material cost as a percentage of net sales stood at 18.7%,
compared to 15.5% in 2QFY2011 and 10.3% in 1QFY2012. Further, power cost
as a percentage of net sales stood at 40.3%, compared to 34.1% in 2QFY2011
and 27.7% in 1QFY2012. Hence, EBITDA decreased by 56.1% yoy to `153cr and
EBITDA margin contracted by massive 1,427bp yoy and 2,094bp qoq to 9.6%.
Other income grew by 54.4% yoy to `132cr and tax rate stood at 16.4% in
2QFY2012, compared to 33.7% in 2QFY2011. Consequently, net profit decreased
by 37.8% yoy to `139cr (significantly below our estimate of `268cr). We maintain
our Neutral view on the stock

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