Q2FY21 profits beat was due to higher other income. Consolidated capex is down 14% y-o-y and capitalisation is up 154% y-o-y as Rs 95 bn of the Rs 195-bn Raigarh Pugalur project was commissioned. Higher surcharge income drove the 67% y-o-y other income rise. We raise our FY21e-22e EPS by 2-5% to account for the same. The stock has de-rated in the last 3-5 years on a weak growth outlook and 6% dividend yield limits absolute downside. Maintain Hold.
