Performance for the quarter ended June'13

GMDC reported a 25% fall in net sales for Q1 FY'14. This was primarily lead by early monsoon, thus disrupting the mining activities and general slowdown in the economy. During Q1 FY'14, Net sales from Mining segment was down by 24% to Rs 333.09 crore and that of power segment, was down by 25% to Rs 55.10 crore.

Mining and operation costs as a % to net sales, net of stock adjustments, was up by 720 bps to 24.3%, while royalty, power and employee costs, as a % to net sales, net of stock adjustments, were all up by 20 bps, 170 bps and 170 bps respectively to 5.5%, 6.5% and 6.9% respectively. Thus OPM was down by 780 bps to 46.3%, resulting OP down by 36% to Rs 171.34 crore.

PBIT of mining segment for June'14 quarter, stood at Rs 160.91 crore, down by 32% and PBIT margin stood at 48.3%. PBIT of power segment stood at loss of Rs 0.19 crore as compared to profit of Rs 14.76 crore for June'13 quarter. PBIT margin thus for power segment was negative 0.3%.

Other income was up by 95% to Rs 38.50 crore, resulting PBIDT down by 27% to Rs 209.84 crore y.o.y. Interest costs stood Nil. Depreciation remained flat at Rs 29.42 crore, resulting a 30% fall in PBT to Rs 180.42 crore. After providing total tax of Rs 61.77 crore, down by 30%, PAT for June'14 quarter stood at Rs 118.65 crore, down by 30% y.o.y

Performance for the year ended Mar'13

Sales were higher by 3% to Rs 1674.68 crore. The operating profit was higher by 17% to Rs 885.97 crore facilitated by higher sales and 630 bps expansion in OPM. The other income was higher by 112% to Rs 155.48 crore, the interest cost was nil (Rs 7.45 crore in FY12) and the depreciation was higher by 8% to Rs 117.38 crore. Eventually the PBT was higher by 29% to Rs 924.07 crore. The tax was higher by 31% to Rs 302.86 crore and the net profit was eventually higher by 23% to Rs 600.85 crore.

The promoter shareholding is around 74% and none of them are pledged.

Share price trades at Rs 85.