Q3FY23 Preview: Coal India: Revenue seen at Rs35,335 crore, PAT at Rs7,800 crore
30 Jan, 2023 |
12:41 PM
Strong show expected from the company
Result date: 31st 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
