Coal India's second-quarter consolidated net profit may rise 15 percent from a year earlier as revenue climbs 13 percent on the back of higher sales and realisations, analysts said.
On a quarterly basis, the state-owned company’s net profit is expected to rise 5-7 percent while revenue may decline 5 percent, they said.
The country’s largest producer of coal is scheduled to declare its results for the July-September quarter on November 12.
The company had reported profit after tax (PAT) of Rs 2,952 crore a year earlier and consolidated revenue of Rs 21,153 crore. In the preceding quarter of this financial year, PAT was Rs 3,174 crore and net sales Rs 25,282 crore.
What analysts expect
Analysts expect Coal India to benefit from the surge in demand for electricity with an increase in economic activity following the pandemic, which resulted in higher dispatches and better realisations. Most power plants in the country are fired by coal.
Motilal Oswal expects revenue to rise 13.8 percent y-o-y to Rs 24,077 crore, which is a decline of 5 percent q-o-q.
It calculates EBITDA (earnings before interest, taxes, depreciation and amortisation) of Rs 5,202 crore for the quarter, which is higher by 53 percent y-o-y and 13 percent q-o-q. PAT estimated at Rs 3,481 crore is 18 percent higher from a year earlier and a 9 percent increase q-o-q.
According to ICICI Securities, coal offtake for the quarter is expected at 147 million tons, up 10 percent y-o-y but down 8 percent q-o-q.
“We expect Coal India’s consolidated top line to increase 17 percent y-o-y but decline 2 percent q-o-q to Rs 24,760 crore,” said the brokerage.
The company is likely to report an EBITDA of Rs 4,791 crore, which is higher by 21 percent y-o-y and little changed on a sequential basis.
“The consolidated EBITDA margin is likely to come in at 19.3 percent (against 18.8 percent in Q2FY21 and 19.2 percent in Q1FY22),” said the brokerage.
PAT at Rs 3,211 crore would be 9 percent higher than a year earlier.
Prabhudas Liladhar expects “coal dispatches to fall by 8 percent q-o-q to 147.4 million tonnes.”
Realisations may grow by 3 percent q-o-q (Rs 45/tonne), it said. It expects the company to report a 13.7 percent y-o-y increase in revenue but a decline of 5 percent q-o-q to Rs 24,041 crore. EBITDA would grow 20 percent y-o-y growth of 20% to Rs 4,769 crore, a decline of 2 percent q-o-q.
Liladhar said PAT may increase 9.3 percent y-o-y and 1.6 percent q-o-q to Rs 3,226 crore.
The Coal India stock closed little changed at Rs 167 on the BSE on November 11. The shares have gained 32 percent in the past one year.