MEMBER'S LOGINX
| Invalid Username / Password | ||||||||
| Invalid Captcha | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Feb 16, 2017 - Coal India: Higher Cost Impacts Profitability. Volumes to Drive Growth Going Forward
Coal India: Higher Cost Impacts Profitability. Volumes to Drive Growth Going Forward
Coal India has announced the third quarter results of financial year 2016-2017 (3QFY17). The topline and the bottomline declined by 7.3% YoY and 77.4% YoY respectively during the quarter.
Performance summary:
- Income from operations increased by 4.2% YoY during 3QFY17. CIL reported sales volumes of 142.7 million tonne (MT) (up 3.5% YoY). The Fuel Supply Agreement (FSA) volume during the quarter came in at 112.9 MT (down 3% YoY). The FSA realisation was at Rs1,289/tonne (flat on YoY basis). E-auction volumes came in at 25.2 MT (up 65.8% YoY) in line with our estimate of 25.0 MT. E-auction realisation was down by 16.2% YoY to Rs 1564/tonne.
- Operating profit declined by 21.3% YoY. Similarly, operating margins contracted by 6.2%. This is on the back of higher provision of Rs6.9 billion for wage revision of Non-executive employees (became effective from 1 July,16) and sharp increase in other operational costs.
- Other income declined by 16%YoY. Depreciation saw a marginal decline of 3.6% YoY. Interest cost increased by 66.6% YoY during the quarter.
- Net profit plunged by 20.3% YoY during 3QFY17 on the back fall in operating profit, increase in interest cost and decline in other income.
Financial Snapshot (Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change Net Sales 189,715 197,045 3.9% 548,848 531,456 -3.2% Other operating income 6,279 7,102 13.1% 17,226 19,035 10.5% Total Income 195,994 204,146 4.2% 566,074 550,490 -2.8% Total Expenses 146,989 165,597 12.7% 434,645 461,967 6.3% Operating profit (EBITDA) 49,005 38,549 -21.3% 131,429 88,524 -32.6% Operating profit margin (%) 25.8% 19.6% 23.9% 16.7% Other income 13,290 11,167 -16.0% 41,698 36,598 -12.2% Interest 664 1,107 66.6% 2,669 2,966 11.1% Depreciation 7,271 7,011 -3.6% 20,159 20,603 2.2% Profit before tax & exceptional items 54,360 41,598 -23.5% 150,299 101,553 -32.4% Tax 18,188 12,754 -29.9% 51,614 36,054 -30.1% Net Profit 36,172 28,845 -20.3% 98,684 65,499 -33.6% Net profit margin (%) 19.1% 14.6% 18.0% 12.3% No. of shares (m) 6,207 Basic diluted earnings per share (Rs) ^ 17.4 P/E ratio (x) * 18.4 * On trailing 12 month basis
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Multibagger Penny Stocks
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Best Small-cap Stocks to Buy
- Best Bluechip Stocks to Buy
- Guide to Penny Stocks
- How to Invest in the Share Market
- Warren Buffett - The Value Investor
- Pick the Best Multibagger Stocks
TRENDING TOPICS
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.