Coal India Ltd (Q2 FY14)

India Infoline News Service | Mumbai |

Coal India’s revenue was higher by 5,8% yoy to Rs154n, but was marginally lower than our estimate of Rs156bn.

CMP Rs275, Target Rs324, Upside 18.4%
  • Coal India’s Q2 FY14 numbers were below our estimate due to inferior product mix and a jump in stores & spares cost

  • During the quarter offtake increased by 7.2% yoy to 109mn tons and production increased by 10% yoy to 98mn tons

  • Realisations were lower by 1.4% at Rs1,412/ton due to a decline in e-auction prices and inferior product mix. We are quite surprised by the decline in FSA realizations.

  • EBIDTA/ton of Rs256 was lower by 8.9% yoy and 25.4% qoq due to higher diesel prices and lower realisations

  • Maintain BUY with a revised 9-month price target of Rs324. 

Result table
(Rs mn)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Net sales
154,115
145,725
5.8
164,724
(6.4)
Inc/(dec) in inventory
(5,750)
(6,486)
(11.3)
(3,749)
53.4
Material costs
(16,759)
(12,566)
33.4
(13,768)
21.7
Personnel costs
(69,740)
(65,364)
6.7
(68,128)
2.4
Contractual expenses
(13,931)
(10,917)
27.6
(14,842)
(6.1)
Overburden removal
(4,690)
(6,741)
(30.4)
(5,971)
(21.5)
Other overheads
(15,301)
(15,034)
1.8
(18,687)
(18.1)
Operating profit
27,944
28,617
(2.3)
39,580
(29.4)
OPM (%)
18.1
19.6
(151) bps
24.0
(590) bps
Depreciation
(4,949)
(3,872)
27.8
(4,757)
4.1
Interest
(80)
(102)
(22.2)
(74)
7.0
Other income
21,828
20,929
4.3
22,196
(1.7)
PBT
44,743
45,571
(1.8)
56,945
(21.4)
Tax
(14,124)
(14,703)
(3.9)
(19,585)
(27.9)
Effective tax rate (%)
31.6
32.3

34.4

Adjusted PAT
30,619
30,869
(0.8)
37,360
(18.0)
Adj. PAT margin (%)
19.9
BSE 271.05 7.95 (3.02%)
NSE 271.00 8.15 (3.10%)

***Note: This is a NSE Chart

 

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