Gujarat NRE Coke Ltd - NSE...Gujarat NRE Coke Ltd. Gujarat NRE Coke Ltd 1 st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31 May, 2016) NSE Code - GUJNRECOKE NSE Market Price

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STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: MINING & MINERAL PRODUCTS REPORTING DATE: 1ST JUNE, 2016

Gujarat NRE Coke Ltd. www.gujaratnre.com

Gujarat NRE Coke Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)

NSE Code - GUJNRECOKE NSE Market Price (₹) 2.55 NSE Market Cap. (₹ Cr.) 409.84

Sector - Mining & Mineral products Face Value (₹) 10.00 Equity (₹ Cr.) 1,580.08

52 week High/Low (₹) 4.55/2.50 Net worth (₹ Cr.) 1,430.44

Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 6,33,240

Year of Incorporation - 1986 TTM P/BV 0.00 Traded Volume (lacs) 16.15

Source - Capitaline

Corporate Office: COMPANY BACKGROUND

22, Camac Street, Gujarat NRE Coke Limited is an India-based producer of metallurgical coke. The Company

has two segments: Coal & Coke and Steel. The Company has three metallurgical coke

plants located at Khambhalia, Gujarat with an installed capacity of approximately 0.35

metric tons per annum (MTPA); at Bhachau, Gujarat with an installed capacity of

approximately 0.32 MTPA, and at Dharwad, Karnataka with an installed capacity of

approximately 0.248 MTPA. The Company has a capacity of approximately 1.45 million

tons per annum (MTPA) metallurgical coke production. The Company has three coal

washeries in Khambhalia, Bhachau and Dharwad with an installed capacity of

approximately 2.4 MTPA. The Company operates a steel plant of rolled and alloy steel

products of installed capacity of approximately 0.31 MTPA at Bhachau, Gujarat. The

Company has wind power projects with an installed capacity of approximately 87.5

megawatts (MW).

Block-C, 5th Floor,

Kolkata – 700 016, West Bengal

Company Website:

www.gujaratnre.com

TABLE 2 - PRICE PERFORMANCE

31st May,

2016

29th May,

2015

30th May,

2014

% Change CAGR for

2 years 2016 vs 2015 2015 vs 2014

Price (₹) 2.55 4.15 14.50 -38.55% -71.38% -58.06%

Trading Volume (Shares) (yearly avg.) 17,03,788 26,05,067 13,39,103 -34.60% 94.54% -

NSE Market Cap. (in ₹ Cr.) 412.37 301.53 867.96 36.76% -65.26% -31.%

Source - Money Control

http://www.gujaratnre.com/



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TABLE 3 - FINANCIALS

(₹ Cr.) 2015 2014 2013 % Change CAGR for 2

years 2015 vs 2014 2014 vs 2013

Net Worth 1,026.02 1,199.98 1,720.14 -14.50% -30.24% -22.77%

Current Assets 2,302.16 2,231.95 2,839.01 3.15% -21.38% -9.95%

Non-Current Assets 2,252.24 2,187.20 2,193.77 2.97% -0.30% 1.32%

Total Assets 4554.4 4,419.15 5,032.78 3.06% -12.19% -4.87%

Investments 1,697.97 1,737.45 1,535.68 -2.27% 13.14% 5.15%

Finance Cost 317.91 331.39 263.02 -4.07% 25.99% 9.94%

Long Term Liabilities 2,137.29 1,972.21 1,125.80 8.37% 75.18% 37.78%

Current Liabilities 1391.09 1,246.96 2,186.84 11.56% -42.98% -20.24%

Turnover 378.94 932.38 1,713.04 -59.36% -45.57% -52.97%

Profit After Tax (PAT - ₹ Cr.) -321.73 -560.81 30.97 N.A. -1,911% N.A.

EPS (₹) -5.00 -9.00 1.00 N.A. -1,000% N.A.

Source - Money Control/Annual Report

Discussion as per Company:

In the Annual Report for FY 2014 - 2015 - During the year under review, the Total Income from Operations (including other

income) was ₹ 471.81 crores as compared to ₹ 1,250.64 crores in the previous year. The Company posted a net loss after tax of

₹ 321.73 crores, as compared to the net loss of ₹ 560.81 crores during the previous year.

In the Annual Report for FY 2013 - 2014 - During the year under review, the Total Income from operations was ₹ 1,250.64

Crores as compared to ₹ 1,751.94 Crores in the previous year. The Company has suffered net loss of ₹ 560.81 crores during the

year, as compared to the Profit of ₹ 30.98 crores during the previous year.

Steel industry, which is the largest consumer of coking coal and metcoke, continued to reel through extreme recessionary

trends which has resulted in subdued demand of metcoke and also dragged its realizations to rock bottom levels. This had

resulted in huge built up of inventories of coking coal and metcoke impacting the cash flows in the business. In view of these

adversities, Corporate Debt Restructuring Empowered Group (CDR EG), upon being approached by the Company, have

approved CDR Package in March, 2014 under Corporate Debt Restructuring mechanism (CDR) issued by Reserve Bank of India.

In the Annual Report for FY 2012 - 2013 - The Company reported higher income from operations amounting to ₹ 415.57 Crores

during the year under review as compared to ₹ 331.00 Crores during the previous year. Consequently, the net profit after tax

earned during the financial year ended 31st March, 2013 was reported higher at ₹ 30.97 crores, as compared to the net profit

after tax of ₹ 3.09 crores reported during the previous year.




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AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Auditors have not made any qualification in their report for FY 2013, 2014 and 2015.

However, the Auditors have drawn emphasis on Note 40 of the consolidated financial statements for FY 2014-15 regarding the

use of Unaudited Management Approved Financial Statements of Gujarat NRE Pty. Ltd., an Australian Associate, for the

preparation of Consolidated Financial Statements.

The Company has not disclosed the amount of unaudited values used in consolidated accounts.

Management Response: None

Response Comment

Frequency of Qualifications Not Applicable

Have the auditors made any adverse remark in last 3 years? No

The Auditors report did not contain any

qualification, reservation or adverse remark in

last 3 years.

Are the material accounts audited by the Principal Auditors? Yes -

Do the financial statements include material unaudited

financial statements? No

-

TABLE 4: BOARD PROFILE (As on 31st March, 2015)

Regulatory Norms Company

% of Independent Directors on the Board 50% 50%

% of Promoter Directors on the Board - 33%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Executive Promoter Director

Is the post of Chairman and MD/CEO held by the

same person? - Yes

Average attendance of Directors in the Board

meetings (%) - 91.22%

Source - Money Control/Annual Report

Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50%

Independent Directors as the Chairman of the Board is a Promoter Executive Director. The Company currently has 50 % of

Independent Directors and hence, it meets the regulatory requirements meet the regulatory requirement.

Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female. The Company is compliant with the

Listing Regulations, 2015 regarding the requirement of at least one-woman director.

Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Arun Kumar Jagatramka as the

Chairman and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of

the Company is not a good governance practice as this may lead to concentration of power in a single person.

Attendance at Board Meetings: The average attendance of Directors in the Board meetings is more than 50%.


Listing%20Regulations,%202015



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TABLE 5 - FINANCIAL RATIOS

Ratios 2015 2014 2013 % Change

2015 vs 2014 2014 vs 2013

Turn

ove

r

Rat

ios

Inventory Turnover 0.32 0.95 0.99 -66.36% -3.59%

Debtors Turnover 1.05 1.96 3.04 -46.16% -35.74%

Fixed asset Turnover 0.17 0.43 0.78 -60.53% -45.41%

Current Asset Turnover 0.16 0.42 0.60 -60.60% -30.77%

Ret

urn

Rat

ios Operating Profit Margin -112.90% -84.40% 5.50% N.A. -1,634.50%

Net Profit Margin -84.90% -60.15% 1.81% N.A. -3,426.97%

Return on Assets (ROA) -7.06% -12.69% 0.62% N.A. -2,162.26%

Return on Equity (ROE) -31.36% -46.73% 1.80% N.A. -2,695.76%

Return on Capital Employed (ROCE) N.A. N.A. 14.96% N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 1.65 1.79 1.30 -7.54% 37.87%

Quick Ratio 0.81 1.01 0.51 -19.87% 98.63%

Cash Ratio 0.55 0.62 0.25 -12.24% 150.36%

Working Capital Turnover ratio 0.42 0.95 2.63 -56.06% -63.96%

Solv

ency

Rat

ios Debt to equity ratio 2.79 2.26 1.03 23.53% 120.20%

Interest Coverage Ratio N.A. N.A. 1.36 N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 1.01 0.41 0.22 146.05% 83.73%

Market Cap/ Net Worth 0.37 0.32 0.22 16.95% 43.35%

Market Cap/PAT N.A. N.A. 12.36 N.A. N.A.

Market Cap/EBITDA N.A. N.A. 265.53 N.A. N.A.

Trading Volume (shares) (avg. of 1 year) 17,85,421 29,31,087 8,73,191 -39.09% 235.68%

Trading Volume (shares) (high in 1 year) 1,78,47,623 2,24,25,134 2,12,34,021 -20.41% 5.61%

Trading Volume (shares) (low in 1 year) 2,53,689 4,35,877 41,886 -41.80% 940.63%

Ratio - High/low trading volume 70.35 51.45 506.95 36.74% -89.85%

Ratio - High/average trading volume 10.00 7.65 24.32 30.66% -68.54%

Source - Money Control




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TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS

Mar' 2016 Mar' 2015 Mar’2014 Comments

Shar

eho

ldin

g

Promoter

shareholding 24.74% 42.50% 50.13%

The Company has issued 68,11,59,048 equity shares of

face value ` 10 each during the period from Mar’2014

to Mar’16.

The promoter shareholding decreased from 50.13% to

24.74% during the aforesaid period. The shareholding of

public institution increased from 17.15% to 45.75% and

that of public others increased from 32.72% to 29.51%

during the same period.

The promoters have pledged 80.61 % of their

shareholding.

Public - Institutional

shareholding 45.75% 15.56% 17.15%

Public - Others

shareholding 29.51% 41.94% 32.72%

Non Promoter Non

Public Shareholding 0.00% 0.00% 0.00%

Market Activity of Promoters

Total number of shares bought by promoter and promoter group during

current year period is 50,45,070 pursuant to CDR scheme under preferential

allotment.

Preferential issue to promoters The Company has issued 10,00,00,000 equity shares to promoters on

conversion of Warrants.

Preferential issue to others -

GDRs issued by the Company The Company did not issue and GDRs during last three years

Issue of ESOPs/Issue of shares other than

Preferential allotment

The Company does not issue any equity under ESOP Scheme in the last three

years.

The Company has issued 1,62,81,912 equity shares on conversion of debt into

Equity.

Source - Annual Report




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Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the

future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over

a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets




7 | P A G E



Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover

Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a

Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp



8 | P A G E



Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated

by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-share stock price by

the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year


https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



9 | P A G E



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