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COAL INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

COAL INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

COAL INDIA Income Statement Analysis

  • Operating income during the year rose 30.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 185.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.8% in FY19 as against 21.8% in FY18.
  • Depreciation charges increased by 12.7% and finance costs decreased by 38.7% YoY, respectively.
  • Other income grew by 6.3% YoY.
  • Net profit for the year grew by 148.2% YoY.
  • Net profit margins during the year grew from 17.6% in FY18 to 33.4% in FY19.

COAL INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 400,141 522,521 30.6%
Other income Rs m 55,314 58,781 6.3%
Total Revenues Rs m 455,455 581,302 27.6%
Gross profit Rs m 87,317 249,648 185.9%
Depreciation Rs m 30,627 34,504 12.7%
Interest Rs m 4,301 2,637 -38.7%
Profit before tax Rs m 107,703 271,289 151.9%
Tax Rs m 37,323 96,625 158.9%
Profit after tax Rs m 70,380 174,664 148.2%
Gross profit margin % 21.8 47.8
Effective tax rate % 34.7 35.6
Net profit margin % 17.6 33.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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COAL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 461 billion as compared to Rs 483 billion in FY18, thereby witnessing an decrease of -4.6%.
  • Long-term debt stood at Rs 15 billion as compared to Rs 11 billion during FY18, a growth of 39.6%.
  • Current assets rose 5% and stood at Rs 697 billion, while fixed assets rose 9% and stood at Rs 591 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 1,288 billion as against Rs 1,201 billion during FY18, thereby witnessing a growth of 7%.

COAL INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 201,787 264,551 31.1
 
Current Liabilities Rs m 483,191 460,978 -4.6
Long-term Debt Rs m 10,544 14,723 39.6
Total Liabilities Rs m 1,201,156 1,287,523 7.2
 
Current assets Rs m 661,156 696,714 5.4
Fixed Assets Rs m 540,000 590,809 9.4
Total Assets Rs m 1,201,156 1,287,523 7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



COAL INDIA Cash Flow Statement Analysis

  • COAL INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 164 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -79 billion, an improvement of 1.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -109 billion, an improvement of 20% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -24 billion from the Rs -2 billion net cash flows seen during FY18.

COAL INDIA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 211,149 163,555 -22.5%
Cash Flow from Investing Activities Rs m -77,469 -78,965 -
Cash Flow from Financing Activities Rs m -135,642 -108,848 -
Net Cash Flow Rs m -1,962 -24,258 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for COAL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.3, an improvement from the EPS of Rs 11.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 236.8, stands at 8.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 64.5 84.8
TTM Earnings per share Rs 11.3 28.3
Diluted earnings per share Rs 11.4 28.3
Price to Cash Flow x 17.3 7.6
TTM P/E ratio x 24.9 8.4
Price / Book Value ratio x 8.5 6.0
Market Cap Rs m 1,708,900 1,586,903
Dividends per share (Unadj.) Rs 16.5 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for COAL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY19, from 1.4x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 103.9x during FY19, from 26.0x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 66.0% during FY19, from 34.9% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 98.1% during FY19, from 52.7% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 13.8% during FY19, from 6.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.4 1.5
Debtors’ Days Days 6 4
Interest coverage x 26.0 103.9
Debt to equity ratio x 0.1 0.1
Return on assets % 6.2 13.8
Return on equity % 34.9 66.0
Return on capital employed % 52.7 98.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how COAL INDIA has performed over the last 5 years, please visit here.

COAL INDIA Share Price Performance

Over the last one year, COAL INDIA share price has moved down from Rs 283.5 to Rs 236.8, registering a loss of Rs 46.7 or around 16.5%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for COAL INDIA and quarterly results for COAL INDIA)

Annual Report FAQs

What is the current share price of COAL INDIA?

COAL INDIA currently trades at Rs 433.8 per share. You can check out the latest share price performance of COAL INDIA here...

What was the revenue of COAL INDIA in FY19? How does it compare to earlier years?

The revenues of COAL INDIA stood at Rs 581,302 m in FY19, which was up 27.6% compared to Rs 455,455 m reported in FY18.

COAL INDIA's revenue has fallen from Rs 787,517 m in FY12 to Rs 581,302 m in FY19.

Over the past 8 years, the revenue of COAL INDIA has grown at a CAGR of -4.2%.

What was the net profit of COAL INDIA in FY19? How does it compare to earlier years?

The net profit of COAL INDIA stood at Rs 174,664 m in FY19, which was up 148.2% compared to Rs 70,380 m reported in FY18.

This compares to a net profit of Rs 92,815 m in FY17 and a net profit of Rs 142,679 m in FY16.

Over the past 8 years, COAL INDIA net profit has grown at a CAGR of 2.4%.

What does the cash flow statement of COAL INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of COAL INDIA reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 163,555 m as compared to Rs 211,149 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -78,965 m as compared to Rs -77,469 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -108,848 m as compared to Rs -135,642 m in FY18.

Here's the cash flow statement of COAL INDIA for the past 8 years.

(Rs m)FY12FY16FY17FY18FY19
From Operations198,879131,538164,608211,149163,555
From Investments-104,10481,5414,546-77,469-78,965
From Financial Activity-73,821-195,874-175,980-135,642-108,848
Net Cashflow20,95417,205-6,825-1,962-24,258

What does the Key Ratio analysis of COAL INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of COAL INDIA reveals:

  • Operating profit margins witnessed a fall and down at 47.8% in FY19 as against 21.8% in FY18.
  • Net profit margins grew from 17.6% in FY18 to 33.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.1 as compared to 0.1 in FY18.

Here's the ratio/financial analysis of COAL INDIA for the past 8 years.

 FY12FY16FY17FY18FY19
Operating Profit Margin (%)21.617.810.421.847.8
Net Profit Margin (%)20.914.58.217.633.4
Debt to Equity Ratio (x)0.00.00.00.10.1

Read: Latest Annual Report Analysis of COAL INDIA

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