COAL INDIA Announces Quarterly Results (2QFY21); Net Profit Down 16.3%

Wed, 25 Nov

COAL INDIA has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

COAL INDIA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	203,826	184,868	211,531	14.4%	3.8%
Other income	Rs m	16,303	7,851	10,848	38.2%	-33.5%
Turnover	Rs m	220,129	192,718	222,378	15.4%	1.0%
Expenses	Rs m	167,715	154,351	171,782	11.3%	2.4%
Gross profit	Rs m	36,112	30,517	39,749	30.3%	10.1%
Depreciation	Rs m	7,930	8,526	8,523	0.0%	7.5%
Interest	Rs m	1,700	1,830	1,473	-19.5%	-13.3%
Profit before tax	Rs m	42,785	28,012	40,600	44.9%	-5.1%
Tax	Rs m	7,543	7,226	11,092	53.5%	47.1%
Profit after tax	Rs m	35,243	20,786	29,508	42.0%	-16.3%
Gross profit margin	%	17.7	16.5	18.8
Effective tax rate	%	17.6	25.8	27.3
Net profit margin	%	16.0	10.8	13.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 3.8% on a year-on-year (YoY) basis. The expenses were up by 2.4% YoY during the same period.
• The company's operating profit increased by 10.1% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.8% in 2QFY21 as against 17.7% in 2QFY20.
• Depreciation charges increased by 7.5% and finance costs declined by 13.3% YoY, respectively.
• Other income declined by 33.5% YoY during the quarter.
• Net profit for the quarter declined by 16.3% YoY. Net profit margins during the quarter declined from 16.0% in 2QFY20 to 13.3% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 14.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 11.3% QoQ during the same period.
• The company's operating profit increased by 30.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.8% in 2QFY21 as against 16.5% in 1QFY20.
• Net profit for the quarter increased by 42.0% QoQ, while net profit margins increased from 10.8% in 1QFY20 to 13.3% in 2QFY21.

To see how COAL INDIA has performed over the last eight quarters,please visit here.

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COAL INDIA Share Price Performance

Over the last one year, COAL INDIA share price has moved down from Rs 200.6 to Rs 125.2, registering a Loss of Rs 75.5 or around 37.6%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

Current Valuations

At the current price of Rs 125.2, the price to earnings (P/E) ratio of COAL INDIA stands at 5.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.5 times.