Sunday, July 11, 2010

GUJARAT NRE COKE = Q1 RESULT = EXCELLENT IMPROVEMENT = LONG TERM INVESTORS' DELIGHT



GUJARAT NRE COKE LIMITED

FIRST QUARTER RESULTS (Q1 FY11)

Profile of Gujarat NRE COKE LIMITED


Gujarat NRE Coke Ltd (GNCL)is the largest independent producer of met coke in India. It is also having coking coal mines in Australia with over 560 million tons of Metallurgical Coal resource with excellent coking properties. The company, through forward integration, is foraying in to steel making and power generation. It has 87.5 MW wind power energy and has also set up mini steel mill in Gujarat to recycle steel scraps using green wind energy to manufacture TMT Bars.
Its Coke Plants’ Present Capacity is said to be 1.25 MTPA.According to a news from the company, the Met Coke capacity of 1.25 million tons is  being increased to 4 million tons by 2014/15 with setting up of green field/brown field plants in Gujarat, Karnataka and Andhra Pradesh. Its Steel Plant has a 0.311 MTPA capacity. It is generating Wind Power of 87.5 MW. Its Waste Heat Power (emanating from coke making process) Plants of 60 MW are said to be Under implementation. Gujarat NRE coke has been progressing well in all of its plans in recent times.

Its first Quarter (Q1 FY11) result compared with earlier Quarters results are hereunder :


QUARTERLY RESULTS = Q1 FY 11


Net Sales has increased to Rs.452 cr in Q1 FY11 -  from Rs.396 cr in Q3 FY10, an increase of 14% QOQ ; and from Rs.310 Cr in D1 FY10, an increase of 45%.
Total expenditure has however showed only a 1% increase mainly due to lower stock in trade and works in progress.

This has resulted in a huge increase of 470% in operational profit to Rs. 64.16 cr in Q1 FY11 from Rs.     11.26 Cr in Q4 FY10 and  from Rs.5.53Cr in Q1 FY10, representing an increase of 1060%.Interest expenditure has come down by 19% QOQ. Tax expense has however increased to Rs.10.32 Cr in Q1 FY11 from Rs.      4.19 Cr in Q4FY10 – an increase of     146% QOQ.

Over all – the Net Profit in Q1 FY11 has increased to Rs.20.04 Cr compared to Rs.        1.34 Cr in previous Qtr, an increase of    1396%  and compared to Rs.3.64 in Q1 of FY10, representing an increase of 451%. The last year’s NPT was Rs.51.87 Cr.


Basic EPS in Q1 FY11 has gone up to Rs.        0.37 on a Face Value of Rs.10 –compared to Rs.0.02 in Q4 FY10  and compared to Rs.0.08 in Q4 FY10 and further compared to last year’s annual EPS of Rs.1.08.The improvement has come on the enhanced equity of Rs. 548.01 Cr in FY11 compared to Rs.498.19 Cr in FY10. The Public Share holding (%) in the company is 53.34%.

The likely EPS for FY11  is difficult to predict at this point of time – given the fantastic jump in the Q1 result and the Management’s enthusiasm in going forward in FY11.

The company’s CMD said that Met coke demand has increased considerably over the last year and that they have seen strong price rice till June in this quarter. He expects to see a shortage of the product in 2011 and beyond. The company is  working for a capacity of 6 MTPA in 3-4 years – and to cross 2 MTPS this year.

Considering the company’s huge expansion plans, it seems that the company will continue to produce excellent improvement in the results in the future.
It current market price of 63. It can be a long term investor’s delight.

The quarterly figures are as under :

Jun-00
Mar-10
Dif%1
Dec-09
Sep-09
Jun-09
Dif%2
(STD.ALN)
Net Sales
45215
39594
14
31247
38341
31004
46
140186
Other Optg Incm
-
-

-
-
-
-
Other Income
-
-

-
-
-

Total Income
-
-

-
-
-

SIT&WIP
-9253
9089
-202
-5011
1473
6859
-235
12410
Raw Materials
-
-

-
-
-
-
Traded Goods
40306
22419
80
24620
26136
18485
118
91660
Employees Cost
378
313
21
409
456
326
16
1504
Depreciation
1205
1193
1
1167
1151
1136
6
4647
Other Expdr
6163
5454
13
4348
3928
3645
69
17375
Total Expenditure
38799
38468
1
25533
33144
30451
27
127596
Except. Items
-
-

-
-
-

opt.Profit
6416
1126
470
5714
5197
553
1060
12590
Other Income
158
3792
-96
921
287
2461
-94
7461
P B I & EI
6574
4918
34
6635
5484
3014
118
20051
Interest6
3538
4365
-19
3095
2694
2460
44
12614
Except. Items
-
-

-
-
-
-
P B T
3036
553
449
3540
2790
554
448
7437
Tax expense
1032
419
146
872
769
190
443
2250
P A T
2004
134
1396
2668
2021
364
451
5187
Extra. Items
-
-

-
-
-
-
Net Profit
2004
134
1396
2668
2021
364
451
5187
Dividend (%)
-
10

-
-
-
10
Face Value-Rs
10
10
0
10
10
10
0
10
Paid Up Equity
54801
49819
10
48092
47692
47692
15
49819
Reserves
-
-

-
-
-
85241
Basic EPS af.EI
0.37
0.02
1750
0.56
0.42
0.08
363
1.08
Diluted EPS af.EI
0.36
0.06
500
0.48
0.41
0.07
414
1.02
Basic EPS be.EI
0.37
0.02
1750
0.56
0.42
0.08
363
1.08
Diluted EPS be.EI
0.36
0.06
500
0.48
0.41
0.07
414
1.02
Public holding (%)
53.34
53.54
0
55.29
54.92
54.92
-3
53.54

ANNOUNCEMENTS
TO THE
EXCHANGE

09-07-2010        Gujarat Nre Coke Limited has informed the Exchange regarding Press Release dated July 09, 2010, titled "Gujarat NRE Coke Q1 PAT up 4.5 times, expansion plans on track".
09-07-2010        Gujarat Nre Coke Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on July 09, 2010 has decided inter alia as follows: (1) The date of Annual General Meeting has been fixed on September 10, 2010. (2) The Closure of Share Transfer Registers and Register of Members has been fixed from September 01, 2010 to September 10, 2010 (both days inclusive) for the purpose of both Annual General Meeting and Dividend.    -
09-07-2010        Gujarat Nre Coke Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on July 09, 2010 decided inter alia as follows: (1) 40,00,000 Equity Shares of Rs.10 each and 4,00,000 "B" Equity Shares of Rs.10 each has been allotted to Gujarat NRE Energy Resources Ltd., pursuant to conversion of 40,00,000 outstanding warrants. (2) 2,79,300 Equity Shares of Rs.10 each and 27,930 "B" Equity Shares of Rs.10 each has been allotted to employees/directors of the Company and its subsidiaries pursuant to exercise of options under Employee Stock Option Scheme, 2005.(3) 32,14,000 Options have been granted in 3rd Tranche under GNCL Employee Stock Option Scheme, 2007 to the employee(s) and Director(s) of the Company and its Subsidiaries at a price of Rs.63.05 per share having vesting period of 3 years/4 years/5 years respectively and carrying an option to exercise and receive one Equity Share of Rs.10 each in lieu of every option upon completion of vesting period and within the exercise period as per the scheme. Please also note that pursuant to the aforesaid allotment of Equity Shares, the total paid up capital of the Company now stands at Rs.552,72,08,660/- comprising of 50,24,73,515 Equity Shares of Rs.10 each and 5,02,47,351 "B" Equity Shares of Rs.10 each.
31-05-2010        Gujarat Nre Coke Limited has informed the Exchange that the Board of Directors at its meeting held on May 30, 2010 have recommended payment of final dividend at Re. 1/- per Equity Share and Re. 1/- per "B" Equity Share for the year ended March 31, 2010, subject to the approval of members.       -
13-05-2010        Gujarat Nre Coke Limited has informed the Exchange regarding a revised Press Release issued by the Company's Associate Company Gujarat NRE Mineral Resource Ltd., titled "Gujarat NRE Mineral Resources Ltd (GNMRL) to offer Rights Issue".  
13-05-2010        Gujarat Nre Coke Limited has informed the Exchange regarding a press release dated May 13, 2010 , titled "Gujarat NRE Mineral Resources Ltd (GNMRL) to offer Rights Issue".
11-05-2010        Gujarat Nre Coke Limited has informed the Exchange that the Committee of the Board of Directors of the Company at its meeting held on May 10, 2010 has issued and allotted 4,98,19,421 "B" Equity Shares of Rs. 10/- each pursuant to bonus issue in the ratio of 1 (one) "B" Equity Share of Rs. 10/- each (shares with differential voting rights) for every 10 (ten) Equity Shares held by the shareholders of the company as on the record date i.e. May 7, 2010. Consequently the Paid-up Capital of the Company has increased from Rs. 498,19,42,150/- (comprising of 49,81,94,215 Equity Shares of Rs. 10/- each to Rs. 548,01,36,360/- (comprising of 49,81,94,215 Equity Shares of Rs. 10/- each and 4,98,19,421 "B" Equity Shares of Rs. 10/- each).        -
29-04-2010        Gujarat Nre Coke Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on April 29, 2010: (a) Issued and allotted 2500 - 11% Secured Redeemable Non-convertible Debenture of Rs.10,00,000 each and (b) Issued and allotted 2,08,00,000 Convertible Warrants at a total warrant price of Rs.120 each. The aforesaid issue/ allotments were made in accordance with the provisions of Chapter VIII Of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.      -
26-04-2010        Gujarat Nre Coke Limited has informed the Exchange that the Board of Directors of the Company has fixed May 07, 2010 as record date for entitlement of bonus shares of "B" Equity Shares (i.e. Equity Shares with differential voting rights) in the ratio of 1 (one) "B" Equity Share for every 10 (ten) Equity Shares held by the share holders of the Company on the record date.   -
26-04-2010        Gujarat Nre Coke Limited has informed the Exchange regarding a press release dated April 26, 2010 , titled "Gujarat NRE places $90 million long wall order - keeps coal production expansion target on track". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
20-04-2010        Gujarat Nre Coke Ltd. has informed the Exchange regarding a press release dated April 20, 2010, titled " Gujarat NRE to sponsor Australian Trade Commission ("Austrade") Seminar Series in India on "Doing Business with Australia". A copy of the press release shall be available on the NSE website http://www.nseindia.com) under: Corporates > Latest announcements and on the Extranet Server (/Common/Corporate Announcements).
19-04-2010        Gujarat Nre Coke Ltd. has informed the Exchange that:"The Company has opted to submit the Audited Financial Results of the Company for the entire financial year ended 31st March, 2010 (instead of Unaudited Financial Results for the quarter ended 31st March 2010) within the time limit of 60 days from the end of the financial year as stipulated therein i.e. on or before 30th May, 2010".    -
01-04-2010        Gujarat Nre Coke Ltd. has informed the Exchange that the Committee of the Board of Directors of the Company at its meeting held on March 31, 2010 has issued and allotted 14,50,000 Equity Shares of Rs.10/- each at a premium of Rs.55.78 per share pursuant to Conversion Notice(s) received from Promoter / Promoter Group Company(ies) as per following details towards conversion of warrants into equity shares of the Company. (1) From Bulli Coke Private Limited for conversion of 12,00,000 warrants into equity shares of Rs.10/- each of the Company. (2) From Gujarat NRE Energy Resources Limited for conversion of 2,50,000 warrants into equity shares of Rs.10/- each of the Company. Consequently, the Paid-up Capital of the Company has increased from 49,67,44,215 Equity Shares of Rs.10/- each to 49,81,94,215 Equity Shares of Rs.10/- each.


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