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  • 08 Nov 2022
  • ICICIdirect Research

COAL INDIA (CIL) REPORTED A MIXED BAG PERFORMANCE FOR Q2FY23

COALINDIA - 410 Change: 1.20 (0.29 %)

News:

For Q2FY23, Coal India reported off take volume of 155 Million Tonnes (MT), up 5% YoY (our estimate of 154 MT). FSA sales volume for the quarter stood 142 MT, up 20% YoY (our estimate of 140 MT), while FSA realisation for the quarter stood at Rs 1414/tonne, up 2% YoY (our estimate of Rs 1425/tonne). E-auction volume for the quarter stood 10 MT (our estimate of 12 MT), while E-auction realisation for the quarter stood at Rs 6062/tonne, up 281% YoY and 40% QoQ (higher than our estimate of Rs  4800/tonne)

·         For Q2FY23, Coal India reported consolidated topline of Rs 29838 crore, up 28% YoY (our estimate of Rs 28960 crore)

·         Consolidated EBITDA for the quarter stood at Rs 7280 crore (up 85% YoY), lower than our estimate of Rs 8878 crore. Consolidated EBITDA came in lower than our estimate due to higher than expected operating costs (especially employee expenses). Employee expenses for the quarter stood at Rs 10829 crore, up 13% YoY and 8% QoQ, higher than our estimate of Rs 10078 crore

·         During the quarter, consolidated other income stood at Rs 1761 crore, up 125% YoY and 77% QoQ, higher than our estimate of Rs 775 crore. Ensuing consolidated PAT for the quarter stood at Rs 6044 crore, up 106% YoY, broadly in line with our estimate of Rs 6251 crore

·         Coal India has declared an interim dividend of Rs 15/share

View:

 Coal India is one of the largest coal producers in the world. In FY22, Coal India produced 623 Million tonnes (MT) and offtake stood at 662 MT. For FY23E Coal India has given production volume target of 700 MT. On the back of strength in the global coal prices, over the last couple of quarters Coal India is reporting healthy e-auction realisations , which augurs well for the company. Furthermore, Coal India also has healthy dividend yield.

Impact:

Neutral