CMP Rs330, Target price Rs356, Upside 7.9%
± Topline increased 19.1% yoy to Rs22.5, lower than our estimate of Rs24.2bn
± The underperformance in topline was due to lower iron ore realization and lower pig iron production
± Iron ore sales volume of 5.3mn tons was inline with our expectation and net realizations increased 10% qoq to Rs3,883/ton, lower than our estimate of Rs4,066/ton
± Net cash (excluding inter-corporate loan of Rs10bn) increased from Rs75.8bn by the end of previous quarter to Rs82.3bn
± Lack of volume growth visibility over the next two years to keep stock under pressure; maintain Market Performer
