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Informist, Thursday, Jul 18, 2024

 

By Avishek Rakshit

 

KOLKATA – State-owned Coal India Ltd is expected to report a 7.7% year-on-year decline in its consolidated net profit to 73.6 bln rupees for the quarter ended June, according to the average of estimates from five brokerages. The consolidated revenue is expected to remain flat on a year-on-year basis at 359.7 bln rupees.

 

Sequentially, the company's net profit is expected to dip 15.2%, and revenue is likely to fall 3.9%. Coal India posted a net profit of 79.7 bln rupees in the year-ago period and 86.8 bln rupees in the Jan-Mar period. Its revenues were at 359.8 bln rupees in the year-ago period and 374.1 bln rupees a quarter ago. The company is yet to declare the date of the announcement of its financial performance for Apr-Jun.

 

Amongst the brokerages, Anand Rathi Share and Stock Brokers estimated the highest net profit at 78.6 bln rupees, while Axis Securities estimated the lowest at 68.8 bln rupees. However, Axis Securities estimated the highest revenue at 373.7 bln rupees, while Kotak Institutional Equities estimated the lowest at 333.1 bln rupees.

 

In a report, Kotak Institutional Equities said the company's earnings for the Apr-Jun period are not comparable with the same quarter last year owing to a change in accounting policy for provision of overburden removal. It further said that Coal India's dispatches grew modestly by 5.5% year-on-year to 197 mln tn. However, the blended realisation per tn of coal sales could decline by 4.5% to 1,691 rupees, the brokerage said.

 

Sector analysts are unanimous in their view on Coal India's price realisations from e-auction declining due to higher availability of coal. Kotak Institutional Equities said the company's average realisations from e-auctions could decline 33% on year to 2,500 rupees a tn. Nuvama Wealth Management Ltd estimated a 35?cline in average realisations from e-auctions, while Motilal Oswal Financial Services Ltd said the e-auction premium could decline to 60% from 66% a quarter ago. Anand Rathi Share and Stock Brokers pointed out that international coal prices declined 17% year-on-year, but were up 8% sequentially.

 

Premium in the e-auction refers to the additional amount that Coal India gets from coal sales via the auction methodology above the notified price. The auction prices start from 20?ove the notified price and go up in accordance with participation in the auctions.

 

The world's largest coal miner is expected to report earnings before interest, tax, depreciation, and amortisation of 92.7 bln rupees, according to the average of estimates from four brokerages. EBITDA is expected to be in the range of 72.8 bln-103.3 bln rupees. Nuvama Wealth Management said the EBITDA per tn of sales is expected to decline 12% primarily due to lower realisations from sales in the e-auction. At 0931 IST, shares of Coal India traded 0.5% lower at 503.10 rupees on the National Stock Exchange.

 

Following are the Apr-Jun earnings estimates of Coal India from five brokerage houses:

 

Broker Name	Net sales (in mln rupees)	Net profit (in mln rupees)	EBITDA (in mln rupees)
Anand Rathi Share and Stock Brokers Ltd	3,66,766.00	78,632.00
Axis Securities Ltd	3,73,720.00	68,810.00	96,880.00
Kotak Institutional Equities	3,33,058.00	74,204.00	72,774.00
Motilal Oswal Financial Services Ltd	3,64,000.00	74,000.00	98,000.00
Nuvama Wealth Management Ltd	3,61,000.00	72,400.00	1,03,300.00
Average	3,59,708.80	73,609.20	92,738.50

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Namrata Rao

 

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