Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 102825.12 Crore) operating in Mining sector.
Coal India Ltd. key Products/Revenue Segments include Other Operating Revenue and Coal for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 24072.83 Crore, down -7.28 % from last quarter Total Income of Rs 25963.12 Crore and up 8.25 % from last year same quarter Total Income of Rs 22237.82 Crore. Company reported net profit after tax of Rs 2937.80 Crore in latest quarter.
Investment Rationale
Coal India’s (CIL) reported PAT for Q2FY22 was down 0.6% YoY at Rs29.3bn. However, adjusted PAT at Rs32.3bn was 9.4% YoY higher due to a one-time charge of Rs4bn (pre-tax) on actuarial valuation of higher medical benefits to retired employees (increased from Rs0.5mn to Rs0.8mn per retiree for 0.21mn retirees), as recommended by the CAG (Rs6bn in Q1FY22). Further, higher diesel and explosive costs, higher depreciation and lower other income were other major reasons offsetting the higher volumes. These factors the brokerage believes may compel CIL to undertake price hikes in the next few months. Revenues were robust at Rs233bn, up 10.1% YoY, on 9.4% YoY growth in offtake volumes to 147mnte. Average realisation was flat at Rs1,448/te though e-auction realisations improved 10.9% YoY. E-auction volumes also increased 20.8% YoY. Since e-auctions with higher premiums started only on 20th Aug’21, billing for the same started from 4th Oct’21 onwards. It therefore expects higher realisation and volumes to be reflected in Q3FY22.
Promoter/FII Holdings
Promoters held 66.13 per cent stake in the company as of 30-Sep-2021, while FIIs owned 6.74 per cent, DIIs 22.0 per cent.
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