Guj NRE Coke

It is India’s largest independent producer of met coke with an installed capacity of 1.434 million tonnes per annum (MTPA). Through its subsidiary it also owns coking coal mines in Australia. Apart from this backward integration, the company has gone in for forward integration too – steel making and power generation through renewable sources. The company posted a very good set of numbers for Q3FY13. Net sales at Rs.527 crore was up 57% (YoY). Net profit was at Rs.20 crore, up almost 10 times on a YoY and sequentially, it was up 18%. And this was despite a forex loss of Rs.19 crore. The big issue with the company remains its big debt. In current Q3, interest outgo was at Rs.63 crore and for 9MFY13, it was at Rs.188 crore. It total debt is around Rs.1700 crore and has very low levels of cash balance. The good news is that promoters stake has gone up from 46.46% to 50.68% of which 83.45% stake is pledged.

The company was recently in the news after the company allotted 4.50 crore equity shares at Rs 21.08 per share to Mangal Crystal Coke, a promoter group company, pursuant to conversion of equity warrants. The conversion price was at a premium of over 15% to its market price then. And it has also issued and allotted FCCBs worth $20 million with an initial conversion price of Rs.22.50 per share. If not converted, they are redeemable on 30th Oct 2017.