CMP Rs699, Target price Rs660, Downside 5.6%
± Q3 FY11 standalone revenue of Rs24bn was marginally lower than our estimate of Rs25.4bn
± The underperformance in topline was due to lower pellet and iron ore fine sales
± Operating profit increased 9.3% qoq to Rs9.4bn due to higher sales volume and was inline with our estimate
± Average power realizations under JPL continued to decline, from Rs4.3/unit in Q2 FY11 to Rs3.9/unit
± JPL’s PAT of Rs4.8bn was higher by 6% qoq, but was lower than expectations
± Maintain Market Performer rating with a price target of Rs660
