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Coal India reported a steady performance in Q1FY25; long term fundamental levers unchanged
- Revenue for the quarter was subdued due to a decline in average realization which for the quarter stood at ₹ 1,671/tonne (vs. ₹ 1,697/tonne in Q4FY24) with coal sales volume of 197 million tonne (up 5% YoY and down 2% QoQ). E-auction share of volumes remained unchanged at ~12% with absolute volumes coming in at 23 million tonne.
- EBITDA came in at ₹14,339 crore with corresponding margins at 39% (up ~160 bps YoY).
- EBITDA/tonne for Q1FY25 came in at ₹722/tonne, flattish on YoY basis.
- Consequent PAT in Q1FY25 stood at ₹10,944 crore (up 4% YoY and 27% QoQ).
- We maintain a positive outlook on Coal India, driven by the company’s ambitious goal of achieving 1000 MT of coal production by FY26, diversification into other segments like critical minerals and power segment (including renewables), investments in new technology domains such as coal gasification, inexpensive valuation, and healthy dividend yield.
We have a buy rating on a stock at a target price of ₹550
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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