COAL INDIA 2018-19 Annual Report Analysis

Mon, 22 Jul

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 14.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 168.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.9% in FY19 as against 11.5% in FY18.
• Depreciation charges increased by 12.7% and finance costs decreased by 36.1% YoY, respectively.
• Other income grew by 18.1% YoY.
• Net profit for the year grew by 148.1% YoY.
• Net profit margins during the year grew from 8.2% in FY18 to 17.7% in FY19.

COAL INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	810,818	928,961	14.6%
Other income	Rs m	49,749	58,737	18.1%
Total Revenues	Rs m	860,567	987,698	14.8%
Gross profit	Rs m	92,878	249,780	168.9%
Depreciation	Rs m	30,627	34,504	12.7%
Interest	Rs m	4,301	2,750	-36.1%
Profit before tax	Rs m	107,699	271,263	151.9%
Tax	Rs m	37,323	96,625	158.9%
Profit after tax	Rs m	70,380	174,630	148.1%
Gross profit margin	%	11.5	26.9
Effective tax rate	%	34.7	35.6
Net profit margin	%	8.2	17.7

COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 458 billion as compared to Rs 483 billion in FY18, thereby witnessing an decrease of -5.2%.
• 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 693 billion, while fixed assets rose 12% and stood at Rs 423 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 1,327 billion as against Rs 1,255 billion during FY18, thereby witnessing a growth of 6%.

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	264,539	31.1
Current Liabilities	Rs m	483,191	458,122	-5.2
Long-term Debt	Rs m	10,544	14,723	39.6
Total Liabilities	Rs m	1,254,707	1,327,188	5.8
Current assets	Rs m	661,156	693,197	4.8
Fixed Assets	Rs m	378,468	422,726	11.7
Total Assets	Rs m	1,254,707	1,327,188	5.8

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 167 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -83 billion, an improvement of 6.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -102 billion, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -17 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	166,955	-20.9%
Cash Flow from Investing Activities	Rs m	-77,469	-82,658	-
Cash Flow from Financing Activities	Rs m	-135,642	-101,516	-
Net Cash Flow	Rs m	-1,962	-17,220	-

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 220.2, stands at 8.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	130.6	150.7
TTM Earnings per share	Rs	11.3	28.3
Diluted earnings per share	Rs	11.1	27.6
Price to Cash Flow	x	13.5	6.7
TTM P/E ratio	x	7.8	8.0
Price / Book Value ratio	x	8.5	6.0
Market Cap	Rs m	1,366,872	1,390,863
Dividends per share (Unadj.)	Rs	16.5	13.1

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 99.6x 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 13.4% during FY19, from 6.0% 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	28	22
Interest coverage	x	26.0	99.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.0	13.4
Return on equity	%	34.9	66.0
Return on capital employed	%	52.7	98.1

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 263.2 to Rs 220.2, registering a loss of Rs 43.0 or around 16.3%.

Overall, the S&P BSE SENSEX is up 4.7% over the year.

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