Monnet Ispat

States’ procrastinating tactics responsible for delays in coalmines development

States’ procrastinating tactics responsible for delays in coalmines developmentOfficials as a majority of coal companies blamed state governments' procrastinating tactics for delays in the development of coalmines.

The union government is considering annulment of coal blocks allotted to as many as fifty-eight companies as these companies failed to develop the mines within the prescribed timeframe. These companies were recently called by the Inter Ministerial Group (IMG) to explain the reason behind the long delays in coalmines development.

Coal companies blame procedures for delay in commencement of production

Coal companies blame procedures for delay in commencement of productionMost of the private sector coal companies, which were called by the Inter Ministerial Group (IMG) to explain why they delayed the development of the coal blocks allotted to them, blamed procedures for the delay.

Representatives of the private coal companies said sluggish land acquisition rules and forest clearances prevented them from commencing production on time. They also alleged government-run coal companies got undue attention.

Buy Monnet Ispat With Target Of Rs 612 : PINC Research

Monnet IspatSlight delay in growth projects - Not a major concern Monnet's Q4FY11 revenues at Rs4.5bn and EBITDA at Rs1.3bn were flat YoY as improved steel performance was offset by lower power tariff (Rs3.1 in Q4FY11 vs. Rs4.3 in Q4FY10 & Rs3.4 in Q3FY11). OPM declined by 43bps to 29%. Net profit grew 6% YoY to Rs766mn on account of higher other income.

Segmental performance: Steel segment revenue grew 11.7% YoY on account of higher blended realisations (up 21% YoY) despite a 11% YoY decline in volumes at 171kt. Power sales of 235mn units were higher 6% YoY; however with 27% fall in tariff's to Rs3.1/kwh, power segment revenues declined 21% to Rs872mn.

Buy Monnet Ispat With Target Of Rs 697

MONNET ISPAT LTD.Monnet Ispat's Q3FY11 revenue at Rs3.5bn and EBITDA at Rs1.1bn declined 7% and 3% YoY respectively as contribution from power sales declined 40% YoY due to reduced tariff. OPM expanded by 120bps YoY to 31.4%. However, PAT at Rs702mn grew 3% YoY on higher other income and lower interest.

Steel output subdued in Q3, but focus coming back: Steel sales (incl. DRI, ferro alloys) declined 10% YoY to 151kt on lower sales of steel (down 98% YoY to 626 tonnes, mostly rejects at a realisation of only ~Rs12/kg). The company has increased focus on steel production (billets, structurals) and expects to ramp-up output and sales in Q4.

Buy Monnet Ispat: PINC Research

Buy Monnet Ispat: PINC ResearchWe visited Monnet's (MIEL) Raigarh plant and saw their existing operations and upcoming expansion projects. We also visited the company's underground coal mine at Milupara and saw underground mining operation first hand.

Key Takeaways:

PINC Result Review – Monnet Ispat Ltd.

Monnet Ispat Ltd.Monnet Ispat's standalone revenue at Rs3.6bn grew 15% YoY on improved realisations. Consequently, operating profit at Rs1.05bn rose 9% YoY, although OPM declined by 169bps YoY to 29% due to increase in raw material costs. Net Profit was flat at Rs656mn.

Merchant power: The company sold 198mn units of power at an average tariff/unit of Rs4.3 (vs Rs4.9 in Q1FY11, Rs4.2 in Q2FY10).

Expansion Update: Monnet's proposed 1.4 mn tonnes structural steel plant is expected to get completed by FY13 with gradual increase in capacities Q4FY11 onwards.

Research and Analysis of Monnet Ispat & Energy Ltd : Fairwealth Securities

Research and Analysis of Monnet Ispat & Energy Ltd : Fairwealth SecuritiesMonnet Ispat & Energy Ltd (MIEL) is the flagship company of the well diversified Monnet Group. It is the second largest sponge iron based steel manufacturer in India after Jindal Steel & Power limited. The Group currently manages manufacturing units for Sponge Iron, Steel Melting & Rolling Mill, Ferro- Alloys Plant, Power Generation units, Mining & Mineral Beneficiation of Coal, Iron Ore and other minerals. The Group also has a highly skilled set of professionals who aid the industry by providing Coal Consulting Services.

BHEL secures order worth Rs 2630 crore from Monnet Ispat

BHEL secures order worth Rs 2630 crore from Monnet Ispat State-run power and engineering equipment firm BHEL has secured an order worth Rs 2630 crore from Monnet Ispat and Energy Group for supplying of thermal power project machinery.

Under the deal, the company would supply Boiler Turbine Generator to Monnet Ispat for an upcoming thermal power project in Orissa.

Buy Monnet Ispat For Long Term: Abhishek Jain, Stocksidea.com

Buy Monnet Ispat For Long Term: Abhishek Jain, Stocksidea.comMonnet Ispat Limited, managed by the Monnet group was promoted by O P Jindal of the Jindal group of Companies, in 1990. The main business of the company is sponge iron, char and M S ignots, sugar, rice, power generation and Ferro Aloys. The company’s plants are located at Mandir, Hasaud, Raipur in Chhattisgarh. The company’s Sponge iron business however, continues to be buoyant on account of the falling imports and higher landed cost of scrap.




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