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Coal India Q1FY23 Review: E-auction realisations surprise positively...
What's Buzzing:
Coal India (CIL) reported a healthy performance in Q1FY23. For the quarter, topline, EBITDA and PAT, all came in higher than our estimates. Better-than-expected E-auction realisation aided CIL's performance for the quarter.
Context:
For Q1FY23, CIL reported consolidated topline of Rs 35092 crore, up 39% YoY and 7% QoQ (higher than our estimate of Rs 32505 crore). Consolidated EBITDA for the quarter was at Rs 12251 crore (up 153% YoY and 35% QoQ), significantly higher than our estimate of Rs 8436 crore. Ensuing consolidated PAT for the quarter was at Rs 8834 crore, up 178% YoY and 32% QoQ, significantly higher than our estimate of Rs 6013 crore.
Our Perspective:
For Q1FY23, Coal India's E-auction realisation for the quarter was at Rs4340/tonne, up 177% YoY and 78% QoQ (significantly higher than our estimate of Rs 2800/tonne). Aided by better than expected E-auction realisations, EBITDA margin and EBITDA/tonne came in notably higher than our estimate. Consolidated EBITDA margin for the quarter was at 34.9% compared to 19.2% in Q1FY22 and 27.8% in Q4FY22 (our estimate of 26.0%). EBITDA/tonne for the quarter was at Rs 690/tonne compared to Rs 302/tonne in Q1FY22 and Rs 504/tonne in Q4FY22 (our estimate of Rs 475/tonne). Going forward, as global coal prices are still hovering at healthy levels, CIL's e-auction realisation are expected to remain firm, going forward also, which augurs well for CIL's consolidated entity.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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