Q3FY23 Preview: Coal India: Revenue seen at Rs35,335 crore, PAT at Rs7,800 crore

30 Jan 2023 , 12:41 PM

Result date: 31^st January, 2023

Recommendation: Buy 

Target price: Rs 275

Source: IIFL Research

Coal India recorded 15.8% growth in production to 479mt, during the nine months ending December 31, 2022; as compared to the year-ago period. Supply to power sector in this period grew 11% on a year-on-year basis to 432.7mt. Increase in average selling prices (higher e-auction premium), coupled with higher dispatches could lead to revenue growth of 24% for Coal India in the December 2022 quarter. Sequential numbers are not comparable considering the seasonality factor.

Despite increase in employee costs, the company could post 53% growth in EBITDA as compared to the year-ago quarter.

Profit After Tax or PAT could grow 62.8%, further aided by higher other income as compared to the year-ago quarter.

Important management insights to watch out for:

• Availability of coal for e-auction 
• Commentary on the National Coal Wage Agreement and possibility of FSA price hike

Rs. Crore	December 2022 estimates	YoY change	QoQ change
Revenue	35,335	24.3%	18.5%
EBITDA	9,338	52.7%	29.2%
Profit After Tax	7,800	62.8%	22.8%

Source: Brokerage reports