Reflecting on the negative impact of rupee appreciation on their business in an interview on CNBC-TV18, he added that the timing of the shipment spillover could cause an increase in the ferrochrome production in FY15.
Also read: Indian Metals to consider dividend on May 20, 2014
Panda says that his outlook for the second half of the fiscal year is positive due to a probable improvement in realizations and turnover.
Below is the transcript of Subhrakant Panda's interview with CNBC-TV18's Sumaira Abidi and Nigel D'Souza.
Sumaira: While you have made a profit from a loss on a year-on-year (YoY) basis, your income and operationally EBITDA is down. At the same time, your margins have sustained closer to 20 percent. On what account have we seen this dip in your revenue and can you take us through your realizations of this past quarter?
A: If you look at the Q4 results, there is a slight dip. However, it is due to us not managing our quarter-on-quarter (QoQ) results. A shipment spilling over into April caused that dip.
On the other hand, if you look at the annual numbers, we have registered a slight increase in our turnover and a nearly 21 percent increase in EBITDA. That has not translated through as far as PAT is concerned due to higher interest and depreciation on account of the capitalisation of the 120 megawatt captive power plant.
However, the long-term impact of this investment far outways any short-term impact that it has on the numbers. Going forward, now that we are at the end of the capex cycle and will start bearing down debt, we do expect the numbers to improve.
Nigel: You said that a particular shipment that didn't go through in the past quarter is going to, in this one. What kind of impact do you expect it to have? What is the total bump in the revenue and will it overshoot by a particular figure?
A: It all depends on whether the shipment going through in the last week of March spills over into April. We have registered the highest ever ferrochrome production of 198000 tonne in FY14 and the guidance for FY15 is of about 230000 tonnes.
So, riding on higher volumes, we do expect realisations to improve in the second half of the year and are forecasting a turnover of about Rs 1550-1600 crore--- an increase from FY14's Rs 1300 crore.
I would not like to break that up into individual quarters as to whether it will have an impact or not because as I have already mentioned, it is dependent on the shipment spillover.
Nigel: Given that you export most of your production, isn't the rupee appreciation good news for you?
A: No, on the contrary, it isn't. We export and therefore, the rupee appreciation to an extent affects margins. In terms of quarterly negotiations of export contract, the appreciation of the rupee causes us to try and increase prices a little bit.
Strictly speaking, rupee appreciation hurts us. However, we are able to minimise the impact of rupee appreciation to a certain extent since we actively manage foreign exchange exposure by way of forward contracts and certain options.
Sumaira: It is expected that going forward, there could be much more and faster clearances for mining projects, etc. Could you tell us what projects of yours are in need of such clearances? Also, if you are optimistic, by when do you think we could see the first of these clearances?
A: Going ahead, the most significant thing for us is the captive coal block that we have been allocated. For the past couple of years, we have been fully compliant with the checklist prepared by the state government and all the requirements-- the environment clearance, the forest clearance stage 1 and 2, the R&R i.e. rehabilitation and requirements.
We have been waiting for the clearance to come through and I would hope that that happens in the near future. We will then be looking at about three months or so to execute the mining lease once the grant order comes through. Hopefully, we should be able to mine captive coal within the current financial year and that will then have a significant impact in terms of competitiveness and pulling down of our generation costs since electricity is a major input into ferrochrome production.
Indian Metals stock price
On May 19, 2014, Indian Metals & Ferro Alloys closed at Rs 291.95, up Rs 6.95, or 2.44 percent. The 52-week high of the share was Rs 311.00 and the 52-week low was Rs 137.60.
The company's trailing 12-month (TTM) EPS was at Rs 9.15 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 31.91. The latest book value of the company is Rs 317.82 per share. At current value, the price-to-book value of the company is 0.92.
Anda sedang membaca artikel tentang
See FY15 turnover at Rs 1600 cr: Indian Metals
Dengan url
http://gayafashionshow.blogspot.com/2014/05/see-fy15-turnover-at-rs-1600-cr-indian.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
See FY15 turnover at Rs 1600 cr: Indian Metals
namun jangan lupa untuk meletakkan link
See FY15 turnover at Rs 1600 cr: Indian Metals
sebagai sumbernya
0 komentar:
Posting Komentar