Ifgl refractories ltd

Highlights of the Concall by Capital Mkt
Total revenues fell 8% on a consolidated basis to Rs 372.4 crore for H1FY’16 compared to H1FY’15 while EBITDA before provision for exceptional item fell 14.4% to Rs 48 crore. The provision of Rs 6.29 crore has been made on account of bankruptcy of one of customers in UK. PBT was down 31.7% to Rs 31.2 crore while PAT was lower 34.7% to Rs 21.1 crore.
EBITDA margin for the quarter on a consolidated basis fell to 12.9% in H1FY’16 from 13.8% in H1FY’15. PAT.Standalone Income stood at Rs. 165.9 crore. EBITDA is Rs. 23.5 crore. EBITDA margin is 14.2%. Profit after Tax is Rs.12.66 crore for H1 FY16. Performance on standalone basis continues to be stable. The recent measures of Gol coupled with execution phase of India has begun which would lead to infrastructure creation and should improve performance of domestic steel producers
Monocon Group, UK subsidiary, reported Income of GBP 14.05mn for H1FY16. Profitability was impacted owing to one-time provision of GBP 0.64 mn in Q2FY16 on account of bankruptcy of UK based Sahaviriya Steel Industries, UK (SIS, UK), being British subsidiary of leading Thai Steel maker
Ei Ceramics, USA Business, reported Income of $ 7.67mn for H1FY16. EBIDTA came in at $0.61mnwith a margin of 8%. H1FY16 PAT was recorded at $ 0.25mn. . Lower domestic production of Steel in USA due to increased imports impacted the performance
Germany performance continues to have stable performance. Hoffman Ceramics, German Business, reported Income of Euro 5.35mn for H1FY16, EBIDTA came in at Euro 0.61mn with a margin of 11.47% an improvement of 91bps YoY.PAT was recorded at Euro 0.38mn with a margin of 7.18%
IFGL Exports, Indian subsidiary focusing on Exports market and operating in Kandla SEZ in Gujarat, reported Income of Rs. 23.30 crore for H1FY16. EBIDTA is Rs.6.1 crore with margin of 26%. PAT is Rs. 3.48 crore with margin of 14.95%. Favourable currencies led to better realisations. Phase 2 of expansion will now be completed in FY17.
Net Gearing stands reduced to 0.14x as on 30.09.2015 from 0.19x on 31st March 2015.
During quarter ended on September, 2015, Steelmakers continued to reel worldwide due to several macros likeslowdown in Chinese Economy, geopolitical conflicts, financial market turbulence, low investments, dumping of iron and steel by China. Global Steel production also fell by approx. 2.8% in H1FY16.Chinese Steel Exports increased by 28% in first 6 months of the year.
The World Steel Association has forecasted demand improvement in 2016. The company expects it to percolate down to its businesses, and expect better performance going forward, being directly related to iron and steel industry.
Domestic Steel makers in India are also under lot of stress. However few measures initiated by Central Government has given some respite to Indian steel makers- 1) To counter rising imports, 20% safeguard duty in September on steel imports from all countries to be valid for 200 days, 2) Import duty on base metals hiked, including iron and steel by 2.5% to counter cheap imports from China after Yuan devaluation and 3) Anti-dumping duty of up to USD 316 per tonne imposed on imports of certain steel products from three countries, including China.