GUJARAT NRE COKE LTD - Q3 FY 2012-13 RESULTS - Q/E DEC,2012 - NET SALES UP 57%;YoY; Net Profit Also Up Well; But, EPS Still Low at Rs.0.34

GUJARAT NRE COKE LTD

Mr.Arun Kumar Jagatramka, CMD

Q3 FY 2012-13 RESULTS

Q/E DEC,2012

Gujarat NRE Coke Ltd (GNCL), the flagship company of Gujarat NRE group is the largest independent producer of met coke in India with an installed capacity of 1.434 MTPA. Identified as the 4th best performing stock in 1st decade of this millennium, GNCL has also been ranked 7th by Business Today in 10 year profit growth (BT 500 ranking).

Gujarat NRE has coking coal mines in Australia with over 650 million tons of Coking Coal resource with excellent coking properties. The coal mines are owned through its subsidiary — Gujarat NRE Coking Coal Limited, listed on the ASX. The two coking coal mines NRE NO.1 and NRE Wongawilli are located in the Illawarra region of New South Wales, Australia. The hard coking coal production is being increased from current level of around 1.5 MTPA to over 5 MTPA by 2016 making it one of the top 10 hard coking coal producers in the world.

Gujarat NRE Coke Ltd, through forward integration has forayed into steel making and power generation through the renewable energy route. The company has 87.5 MW wind power energy and has also set up a mini steel mill in Gujarat to recycle steel scraps using green wind energy to manufacture TMT Bars. The company is currently setting up 60 MW power plants out of the waste heat emanating from the coke making process, while over next few years’ targets to increase metallurgical coke making capacity to 4 MTPA.

The Group is headed by Mr Arun Kumar Jagatramka, a qualified Chartered Accountant. The group wants to emerge as a global resource entity with core focus on coking coal and coke.

PERFORMANCE HIGH LIGHTS IN Q3 FY 2012-13

Net Sales stands at Rs.527.11 Cr in Q3 FY 13; compared to Rs.331.83 Cr in Q2 FY 13 (+58.85%); and Rs.335.57 Cr in Q3 FY 12 (+57.08%).

Total Expenditure stands at  Rs.413.82 cr in Q3 FY 13; compared to Rs.238.17 cr in Q2 FY 13 (+73.75%); and Rs.  255.08 Cr in Q3 FY 12 (+62.23%).

Profit before Intt, Dep. & Taxes stands at Rs.113.29 cr in Q3 FY 13; compared to Rs.93.66 Cr In Q2 FY 13 (+20.96%); and Rs.80.49 Cr in Q3 FY 12 (+40.75%).

Profit  before tax stands at Rs.31.87 cr in Q3 FY 13; compared to Rs.25.41 Cr in Q2 FY 12 (+25.42%); and Rs.2.77 Cr in Q3 FY 12 (+1050.54%).

Tax Expenses stands at Rs.11.75 Cr in Q3 FY 13; compared to Rs.8.69 cr (+35.21%); and Rs.0.87 Cr in Q3 FY 12 (+1250.57%).

Net Profit  stands at Rs.20.12 Cr in Q3 FY 13; compared to Rs.16.72 cr in Q2 FY 13 (+20.33%); and Rs. 1.90 Cr in Q3 FY 12 (+958.95%).

The Diluted EPS stands at Rs.0.34 in Q3 FY 13; compared to Rs.0.29 in Q2 FY 13; and Rs.0.03 in Q3 FY 12. The EPS is very low compared to the Face value of Rs.10.

Face Value of Share. Is Rs.10.

Paid-up Equity is Rs.622.37 cr in Q3 FY 13; compared to Rs.577.37 Cr in Q2 FY 13; and Rs.577.37 Cr in Q3 FY 12; The Net profits are improving but are still very small compared to the Equity.

52 week high/low price : 28.70/15.90 ; current price is around Rs.22.65

Public holding  in the company is 49.32%.

Note : There is a proposed scheme for amalgamation of Guj NRE Coke Ltd and Bharat NRE Coke Ltd..

During the Quarter, the Company has issued 200, 5.5% Unsecured Foreign Currency Convertible Bonds (FCCB) of US$ 100,000 each aggregating US$ 20 Million on 29th October 2012. These bonds are convertible into equity shares of the Company at the option of bondholders at a price of Rs. 22.50 per share. If not converted then they are redeemable on 30th October, 2017. Out of the above FCCBs od Rs.107.47 cr, a sum of Rs.0.23 Cr remains unutilized till the end of Dec,2012.

Results table

GujNRE Coke	31-Dec-12	30-Sep-12	QoQ %Dif	31-Dec-11	YoY% Dif
Net Sales	52711	33183	58.85	33557	57.08
Total Expenditure	41382	23817	73.75	25508	62.23
Profit before Intt, Dep. & Taxes	11329	9366	20.96	8049	40.75
Net Profit	2012	1672	20.33	190	958.95
Diluted EPS	0.34	0.29	17.24	0.03	1033.33
Changes in inventories of FG, WIP, SIT	8913	-6835	-230.4	-21514	-141.43
Cost of materials	24762	24236	2.17	-
Purchases of SIT	-	-		38752
Employee expense	1593	1538	3.58	536	197.2
Depreciation	1486	1463	1.57	1494	-0.54
Other expenses	4628	3415	35.52	6240	-25.83
Total expenses	41382	23817	73.75	25508	62.23
Profit  before tax	3187	2541	25.42	277	1050.54
Tax Expenses	1175	869	35.21	87	1250.57
Net Profit	2012	1672	20.33	190	958.95
Face Value of Share.Rs	10	10	0	10	0
Paid-up Equity	62237	57737	7.79	57737	7.79
Diluted EPS	0.34	0.29	17.24	0.03	1033.33
Public holding (%)	49.32	0		53.97	-8.62

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GUJARAT NRE COKE = RESULTS (STAND ALONE)= 3RD QUARTER FY 2011 = QTR ENDING DECEMBER 2010 = SALES UP 40.44% NPT DOWN 21.1% YOY

Gujarat NRE Coke Limited

NSE Symbol   GUJNRECOKE

Gujarat NRE Coke has announced its (stand alone) Results for the third quarter ending December,2010.

NET SALES is Rs.439 cr – up by 80.17% from Q2 FY 2011 and 40.44% from Q3 FY 2010.

TOTAL EXPENDITURE is Rs.399 cr – up by 90.87% from Q2 FY 2011 and by 56.31% from Q3 FY 2010.

PROFIT FROM OPERATIONS is Rs.40 cr – up by 15.26% from Q2 FY 2011 and down by 30.45% from Q3 FY 2010.

NET PROFIT  is Rs.21 cr – up by 112.2% from Q2 FY 2011 and down by 21.1% from Q3 FY 2010.

On a Face Value of Rs.10, the Basic EPS       is Rs.0.38       compared to Rs.0.17 in Q2 FY 2011 and Rs.0.56 in Q3 FY 2011.

It is presently quoting at Rs.55 per Rs.10 share.

The company’s Australian operations are faring very well. Its Indian operations are also expanded into wind Power, steel making etc.

RESULTS  TABLE :

GUJ NRE COKE	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09
Net Sales	43884	24357	45215	39594	31247
DIF %1	439	80.17	-2.94	10.83	40.44
Incre./decr. in SIT / WIP	-4481	-34397	-9253	9089	-5011
Traded Goods	37931	48833	40306	22419	24620
Employees Cost	419	565	378	313	409
Depreciation	1291	1222	1205	1193	1167
Other Expenditure	4750	4686	6163	5454	4348
Total Expenditure	39910	20909	38799	38468	25533
DIF %2	399	90.87	2.86	3.75	56.31
Profit from Operations	3974	3448	6416	1126	5714
DIF %3	40	15.26	-38.06	252.93	-30.45
Other Income	2225	1655	158	3792	921
Interest	4040	3625	3538	4365	3095
Profit before tax	2159	1478	3036	553	3540
Tax expense	54	486	1032	419	872
Net Profit	2105	992	2004	134	2668
DIF %4	21	112.2	5.04	1470.9	-21.1
Dividend (%)	-	-	-	10	-
Face Value (In Rs	10	10	10	10	10
Paid Up Equity	55797	55785	54801	49819	48092
Basic EPS	0.38	0.17	0.37	0.02	0.56
Diluted EPS	0.37	0.17	0.36	0.06	0.48
Public holding (%)	52.49	52.48	53.34	53.54	55.29

ANNOUNCEMENTS

TO THE EXCHANGE

30-12-2010    Gujarat Nre Coke Limited has informed the Exchange that "the Company has received an intimation from M/s. Russell Vale Traders Pvt. Ltd., a promoter group company that it has purchased 2,08,00,000 convertible warrants of the Company on 28th December, 2010 thru open market. These convertible warrants have a present paid-up value of Rs. 5 each and have been acquired by M/s. Russell Vale Traders Pvt. Ltd, @ Rs. 5.25 each".

28-12-2010    Gujarat Nre Coke Limited has informed the Exchange that the Management Committee of the Board of Directors of the Company at its meeting held on December 27, 2010 has interalia decided : (1) Allotted 6,00,00,000 convertible warrants to promoters / promoter group company on a preferential/ private placement basis @ Rs. 62.50 per share; (2) Allotted 1,02,525 Equity Shares of Rs. 10/- each at a premium of Rs. 13.86 per share and 10,252 "B" Equity Shares of Rs. 10/- each (towards bonus) pursuant to Exercise letter(s) received from the option holder(s) for conversion of options held by them under Employee Stock Option Scheme, 2005. Consequently, the Paid-up Capital of the Company has increased from Rs. 557,85,72,210 to Rs. 557,96,99,980 comprising of 50,72,45,454 Equity Shares of Rs. 10/- each and 5,07,24,544 "B" Equity Shares of Rs. 10/- each.

29-11-2010    Gujarat Nre Coke Limited has informed the Exchange regarding a press release dated November 29, 2010, titled "Gujarat NRE's Australian Operations report Half yearly PAT of Rs. 120 Crores".

24-11-2010    Gujarat Nre Coke Limited has informed the Exchange regarding a press release dated November 24, 2010, titled "Gujarat NRE Coke Ltd's Australian Subsidiary Gujarat NRE Coking Coal Ltd declares excellent H1 results as Turnover Doubles, Record Growth in Profits".

23-10-2010    Gujarat Nre Coke Limited has informed the Exchange that the Board of Directors at its meeting held on October 21, 2010 has decided as follows - a) To issue Guarantee(s) subject to the approval of the shareholders for an amount not exceeding USD 200 million or INR. 1000 crores whichever is higher relating to borrowings to be availed by Gujarat NRE Cooking Coal Ltd. an Australian Subsidiary for mine development activities at its coking coal mines in Australia. b) In supersession to its resolution passed on September 10, 2010, to issue Securities (including Foreign Currency Convertible Bonds) in one or more tranches, for an amount not exceeding USD 200 million or INR 1000 crore whichever is higher subject to the approval of shareholders/others requisite approvals and on such terms and conditions as may decided by the Board. Further, Mr. Rajendra Prasad Jain, Executive Director (Whole Time Director) of the company has resigned from his office due to health reasons.  

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