The Union Steel Minister Birender Singh has said that the government is considering strategic importance of Canadian coking coal for the Indian steelmakers, which are projected to increase in the future keeping pace with the increase in steelmaking capacity in India. During his Canada visit earlier this month, Birender Singh had extensive interaction with the Natural Resource Minister, Governme
1QFY18—a tad weak due to lower prices, one-offs.
Domestic metal names will report sequential decline in earnings led by lower prices, increased input costs and lower volumes (a few cases of outages). We expect earnings of steel companies to decline sequentially due to lower steel realization (-3-4% qoq) and use of high cost coal inventory. Earnin
Another Healthy Quarter on Higher Base Metal Prices
1QFY18E is expected to be strong for the non-ferrous companies, while the ferrous ones are set to report a relatively dull show due to higher raw material prices as well as sequentially lower volumes. The non-ferrous players are likely to deliv
The country's top manganese ore producer MOIL said it has signed an MoU with the steel ministry to meet production target of 12.50 lakh tonnes and a capex of Rs 205.8 crore in the current fiscal, reported PTI. "The company has recently signed the MoU with the ministry for the FY 2017-18. The said MoU, includes targets for achievement of various performance parameters which inter alia,
Power and Mining Sector Update PGCIL strong show to continue; JSW and CIL to report weak numbers - ICICI Sec
Q1FY18: PGCIL strong show to continue; JSW and CIL to report weak numbers
Reason for report: Q1FY18 earnings preview
Power Grid’s (PGCIL) secular earnings growth is likely to continue in the quarter ended Jun’17 as well. PGCIL remains our top pick in the sector given its strong asset pipeline, which will continue
Oil & ali volumes, tight zinc supply driving upgrades
Raising estimates and upgrading to Buy
Oil & gas: More production has become viable, raising volumes and DCF
* We recently attended Vedanta’s (VEDL) Oil & Gas Day, which made us bullish on the company’s
The government has deferred e-auction of the fifth tranche of coal mines for the steel sector and any further development will be intimated in due course, reported PTI. "With reference to the fifth tranche of coal mines auction, bidders may kindly note that following events (e- auction for the qualified bidders scheduled between July 7-14, 2017) shall not take place as per the schedule,&qu
Growth of coal consumption in India may remain tepid as plant load factor of thermal power plants (PLF) is likely to drop in the current fiscal, India Ratings and Research said as per the PTI report. The credit rating agency said it expects the PLF to remain at sub-65 per cent in the medium term. "Ind-Ra expects domestic coal consumption growth in India to remain tepid on account of an exp
Coal India is in the process of awarding a contract to consulting firm KPMG to prepare a Vision 2030 plan, an official of the state-run miner said on Friday.
"KPMG has been selected for preparing Vision 2030 plan and the contract will be awarded. The plan will look at the future of coal sector in the country's energy mix, particularly when coal demand has been subdued,&q
Some pricing pressure, but fundamentals are strong
Trading at 2.8x EV/EBITDA; Re-iterate BUY
Operations are strong, but book cleaning affected PAT in FY17
NMDC’s business is strongly supported by robust demand growth from its key customers (JSW, Essar, RINL, etc.), high qualit
Realization under pressure on grade adjustment and mix
Cut estimates by 4%/10% for FY18/19; Attractive dividend yield; Buy
n The new coal distribution policy ‘SHATKI’ favors coal supply to the power sector at notified prices. This would lead to a decline in the share of e-auction volumes to 16% from 20% estimated
* Volatility in performance weighs down the stock:
Shirpur Gold Refinery, part of Essel Group, has shown volatility in its financial performance lately. The investments made in backward integration and setting up subsidiaries is yet to yield desired results while the refining margins on gold has b
Coal India on Monday announced auction of coal linkages of tranche III for the non-regulated sector.
"Ministry of Coal...has issued policy guidelines and directed CIL (Coal India Ltd) to conduct auction of coal linkages for the non-regulated sector. Towards this, CIL announces auction of coal linkages (Tranche III) for non-regulated sector," the miner said in a regulatory fi
State-owned manganese-ore mining company MOIL on Monday said it has revised prices of different grades of manganese ore, with effective from July 01, 2017. “The prices of various grades of Manganese Ore have been revised, the average increase being 4.6 per cent on an weighted average basis,” said MOIL in a filing to the Bombay Stock Exchange.
MOIL have reduced the free cre
Aluminum pricing—the bull and the bear of it.
Supply side reforms in China markets remain the most important factor in setting an aluminum pricing trajectory. Given the large deficit outside China, prices can either (1) rally on meaningful capacity closures later this year or (2) pull back in case of disappointment as current firm prices are fac
VEDL added around 30% of open interest as long positions along with some delivery based buying on previous trading session. It has rolled around 69% into next contract. On charts, it has also witnessed congestion zone breakout on daily charts with strong volumes. Considering the derivatives data and current chart patte
With the central and state utilities expected to invite bids for coal mining in the near future, domestic mine developer and operators (MDOs) with a good track record will have a big growth opportunities, said India Ratings as per the PTI report. "The MDO route presents a large growth opportunity for domestic engineering, procurement and construction (EPC) players with a demonstrated relev
NEW DELHI - India should rein in its lofty coal output target as power demand is growing at a slower pace than expected, a government policy think-tank said, even as state monopoly Coal India Ltd (CIL) struggles to sell already-mined coal.
A turnaround in India's coal sector, from crippling shortages three years ago to a surplus thanks to faster governme
* Revenue rose 88% YoY and 15% QoQ to Rs 28.7 bn, higher than expectations primarily based on strong realizations of Rs 2895/ tonne, up 66% YoY and 18% QoQ. Sales volume stood at 9.78 mt
* EBITDA rose by 123% YoY however, fell 9% QoQ to Rs 9.3 bn. This was lower than our expectations of Rs 12.1 bn. EBITDA/ tonne rose by 94%
India Steel—on a recovery path.
Indian steel markets started FY2017 on a weak note with muted demand (+4%) due to lower off-take from the construction sector. Trade protection measures remain effective and have largely curtailed steel dumping. The recent weakness in global steel and raw material prices has led to correction in Indian steel price
MoIL reported strong set of numbers, driven by better realisation and higher other income. Net sales during the quarter grew 19.8% YoY to Rs2.53 bn (down 28.9%). EBITDA declined 11.2% QoQ to Rs1.22 bn, while margin expanded to 48.2% from 38.6% in 3QFY17. Strong margin coupled with higher other income, lead to 14.2% QoQ increase in PAT to Rs1.16 bn. After reporting a stagnant volume for last two
The index of mineral production of mining and quarrying sector for the month of April at new base Series (2011-12=100) rose by 4.2 per cent year-on-year to 99.9, helped by strong growth in coal, petroleum and iron ore, showed a government data released on Friday. “The total value of mineral production (excluding atomic & minor minerals) in the country during April 2017 was Rs.
Following a "positive meeting" with Union Labour Department and Coal India officials, the central trade unions operating in the coal industry on Sunday deferred their proposed three-day strike, supposed to commence from Monday, for three months.
"In view of the positive discussion, the proposed three-day nationwide strike from June 19-21, 2017 has been deferred fo
Mixed Quarterly Performance; Volume to Remain Strong
MOIL has reported a mixed performance in 4QFY17. Its blended sales realisation zoomed 119% YoY and 20.4% QoQ to Rs11,309/tonne (vs. our estimate Rs9,250), while sales volume fell by 43% YoY and 38% QoQ to 2.16 lakh tonne vs. our estimate of 3.55 lakh tonne. Notably, MOIL liquidated substantial invent
Likely Demand Revival to Aid Off-take & Realisations
Coal India (CIL) has reported a subdued performance in the quarter ended March 31, 2017. In line with our estimate, its consolidated net sales rose by 8.3% YoY to Rs247bn in 4QFY17 driven by 5% YoY and 3% YoY increase in coal off-take and average realisation, respectively. Its net profit fell by