Coal India Ltd's Q1FY19 consolidated net profit rises 61% yoy to Rs3,786cr: Misses Estimates

The company’s consolidated revenue stood at Rs22,598cr, up 14.1% yoy, but down 10% qoq.

Aug 11, 2018 11:08 IST India Infoline Research Team

Coal India Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 22,598 14.1
EBITDA 5,733 62.8
EBITDA Margin (%) 25.4 759
Net Profit (adjusted) 3,786 61.0
***EBITDA margin change is bps

Coal India missed estimates for Q1FY19 after a sharp increase in employee expenses. Revenue grew 14.1% yoy to Rs22,598cr (expectation Rs24,096cr). EBITDA stood at Rs5,733cr, up 62.8% yoy against estimates of Rs6,480cr. EBIDTA margin rose by 759bps yoy to 25.4% for Q1FY19. Net profit stood at Rs3,786cr vs. estimate of Rs4,227cr.
  • Production for Q1FY19 stood at 136.9mn tonnes, an increase of 15.3% yoy.
  • Offtake for Q1FY19 stood at 153.4mn tonnes, an increase of 10.9% yoy.
  • Sales for the quarter across categories for Q1FY19 were as follows:
    • FSA – 130.4mn tonnes, 21.7% yoy
    • E auction – 19.4mn tonnes, down 28.9% yoy
    • Washed coal (Coking) – 0.24mn tonnes, down 28.9% yoy
    • Washed coal (non-Coking) – 2.3mn tonnes, up 3.6% yoy
  • Realizations (per tonne) for the quarter across categories for Q1FY19 were as follows:
    • Blended Realisations – Rs1,476 (up 3.1% yoy)
    • FSA – Rs1,313 (up 9.3% yoy)
    • E auction – Rs2,399 (up 51.3% yoy)
    • Washed coal (Coking) – Rs7,250 (down 32.4% yoy)
    • Washed coal (non-Coking) – Rs1,926 (down 9.4% yoy)
  • EBITDA margins were impacted as employee expenses rose by 18.9% yoy to Rs9,598cr, indicating an increase of Rs1,527cr yoy. Of this increase, a provision of Rs199.5cr was made towards pay revision for executive employees.
  • During the quarter, the company divested 0.225% stake via placement with Bharat 22 ETF. Post divestment, Govt. of India's stake stands at 78.32%

Technical View:

Coal India Ltd ended at Rs. 276, down by 4.15 points or 1.48% from its previous closing of Rs. 280.15 on the BSE.
The scrip opened at Rs. 280.20 and touched a high and low of Rs. 280.20 and Rs. 272.95 respectively. A total of 38,93,764 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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