Bhushan Steel (Q1 FY14)

India Infoline News Service | Mumbai |

Bhushan steel’s Q1 FY14 results were lower than our estiamtes on account of weak sales volume.

CMP Rs450, Target Rs403, Downside 10.4%
  • Bhushan steel’s Q1 FY14 results were lower than our estiamtes on account of weak sales volume. The company reported 14.1% decline in sales volume during the quarter due to the subdued demand in the domestic market. Sales volume was also lower due to increase in internal consumption of HRC for value addition. 


  • Topline of Rs24.9bn was lower by 12.3% yoy and lower than our estiamte of Rs27.7bn. The impact of lower volumes on topline was marginally offset by higher realisations. Blended realisatiosn for the company increased by 2% yoy and 7.5% qoq, which was a surprise for us. We were expecting ASPs to be flat on a qoq basis. We believe the outperformacne in ASPs was due to an increase in share of Value added products (VAP) in overall sales. Share of sales from Khopoli, company’s value added products plant, increased from 34% in Q4 FY13 to 41% during the quarter. Sales of VAP of the total sales of 0.52mn tons was 80% agaisnt the share of 67% in Q4 FY13 and 65% in Q1 FY13.

Sales volume and realisation trend


Q1 FY14
 Q1 FY13
% yoy
Q4 FY13
% qoq
Sales volume
 
 
 
 
 
CR steel
142,320
126,145
12.8
156,315
(9.0)
Galvanised steel
145,520
122,351
18.9
137,268
6.0
H&T
3,228
2,994
7.8
3,266
(1.2)
HTSS
2,287
2,559
(10.6)
2,482
(7.9)
Colour coating
44,441
41,588
6.9
45,711
(2.8)
Hot rolled steel
100,751
201,246
(49.9)
203,765
(50.6)
Flat products
438,547
502,091
(12.7)
548,807
(20.1)
Billets
37,017
56,069
(34.0)
36,947
0.2
Tube & Shutters
40,933
43,059
(4.9)
42,670
(4.1)
Long products
77,950
99,128
(21.4)
79,617
(2.1)
Total sales volume
516,497
601,219
(14.1)
628,334
(17.8)
 
 
 
 
 
 
Realisations
 
 
 
 
 
CR steel
47,812
51,834
(7.8)
48,084
(0.6)
Galvanised steel
53,279
56,822
(6.2)
50,936
4.6
H&T
92,918
94,322
(1.5)
90,141
3.1
BSE 64.85 [1.10] ([1.67]%)
NSE 64.85 [1.20] ([1.82]%)

***Note: This is a NSE Chart

 

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