Q4FY23 Preview Coal India: Revenue seen at Rs 35,694 crore, PAT at Rs 7,253 crore

5 May 2023 , 02:56 PM

Result date: 7^th May, 2023

Recommendation: Buy

Target price: Rs. 258  

(Source: IIFL Research)

Coal India’s production reached 703 MT in FY23, an increase of 13% over FY22. In the March 2023 quarter, production grew 7.2% over the year-ago quarter. In FY24, the company is targeting 780 MT of production. Demand for electricity and subsequent rake availability will be crucial towards achievement of these targets. In this scenario, the company’s consolidated revenue could grow about 11% as compared to the year-ago quarter.

Consolidated EBITDA could be under pressure on account of lower e-auction premium (partly offset by higher coal dispatch), increased stripping expenses and higher wage expenses. Employee expenses are expected to increase on account of provision towards the wage hike announced in January 2023.

The company’s consolidated Profit After Tax or PAT could grow 8% over the year-ago quarter.

Rs. Crore	March 2023 estimates	YoY change	QoQ change
Revenue	35,694	10.9%	6.4%
EBITDA	9,490	(1.9)%	(6.7)%
Profit After Tax	7,253	8.3%	(1.8)%

Source: Brokerage Reports