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Motilal Oswal Report
Sales volume came in at 3.8 million tonne (-5% QoQ), which was inline. Ebitda came in at Rs 86.7 billion (-9% QoQ), miss vs. our and consensus of Rs105/95 billion.
Reasons for miss: 1) Realisation increased by only Rs 2,100/t QoQ vs. our expectation of Rs3,000/t increase, 2) raw material costs were higher by Rs2,000/t vs our expectation. Consequently, Ebitda/t at Rs22,944 (-Rs3,350/t QoQ).
Indian and domestic subs put up a strong show
Coated Ebitda came in at Rs 10 billion (+4% q/q); Ebitda/t of Rs 12,580 (+7.2% QoQ). The bigger surprise was from overseas subs- 1) Ohio, USA Ebitda came in at $48.3 million (+154% QoQ), Ebitda/t of $298/t which is solid 2) US plate & pipe mill, Italy asset Ebitda came in at $13.2 million/6 million euro. Subs put together generated an Ebitda of Rs 17.4 billion (+123% QoQ). Consequently, consolidated Ebitda of Rs 104.2 billion (+1% QoQ) was in-line with consensus.
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