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Coal India reported a steady performance in Q1FY25; long term fundamental levers unchanged

ICICIdirect Research 02 Aug 2024 DISCLAIMER
  • 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

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