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COAL INDIA 2019-20 Annual Report Analysis
Tue, 31 Mar

COAL INDIA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

COAL INDIA Income Statement Analysis

  • Operating income during the year fell 3.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 13.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 42.7% in FY20 as against 47.8% in FY19.
  • Depreciation charges increased by 0.0% and finance costs increased by 90.7% YoY, respectively.
  • Other income grew by 9.7% YoY.
  • Net profit for the year declined by 4.4% YoY.
  • Net profit margins during the year declined from 33.4% in FY19 to 33.1% in FY20.

COAL INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 522,521 504,854 -3.4%
Other income Rs m 58,781 64,462 9.7%
Total Revenues Rs m 581,302 569,315 -2.1%
Gross profit Rs m 249,648 215,801 -13.6%
Depreciation Rs m 34,504 34,508 0.0%
Interest Rs m 2,637 5,029 90.7%
Profit before tax Rs m 271,289 240,725 -11.3%
Tax Rs m 96,625 73,710 -23.7%
Profit after tax Rs m 174,664 167,015 -4.4%
Gross profit margin % 47.8 42.7
Effective tax rate % 35.6 30.6
Net profit margin % 33.4 33.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

COAL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 491 billion as compared to Rs 461 billion in FY19, thereby witnessing an increase of 6.4%.
  • Long-term debt stood at Rs 20 billion as compared to Rs 15 billion during FY19, a growth of 35.4%.
  • Current assets rose 20% and stood at Rs 837 billion, while fixed assets rose 7% and stood at Rs 630 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 1,467 billion as against Rs 1,288 billion during FY19, thereby witnessing a growth of 14%.

COAL INDIA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 264,551 321,569 21.6
 
Current Liabilities Rs m 460,978 490,683 6.4
Long-term Debt Rs m 14,723 19,934 35.4
Total Liabilities Rs m 1,287,523 1,467,095 13.9
 
Current assets Rs m 696,714 836,876 20.1
Fixed Assets Rs m 590,809 630,219 6.7
Total Assets Rs m 1,287,523 1,467,095 13.9
* 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 FY20 stood at Rs 50 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -48 billion, an improvement of 56% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 12 billion from the Rs -24 billion net cash flows seen during FY19.

COAL INDIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 163,555 49,772 -69.6%
Cash Flow from Investing Activities Rs m -78,965 10,328 -
Cash Flow from Financing Activities Rs m -108,848 -47,909 -
Net Cash Flow Rs m -24,258 12,192 -
* 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 27.1, an decline from the EPS of Rs 28.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 140.0, stands at 5.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 84.8 81.9
TTM Earnings per share Rs 28.3 27.1
Diluted earnings per share Rs 28.3 27.1
Price to Cash Flow x 7.0 6.0
TTM P/E ratio x 8.4 5.2
Price / Book Value ratio x 6.0 3.7
Market Cap Rs m 1,586,903 1,202,348
Dividends per share (Unadj.) Rs 13.1 12.0
* 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 1.7x during FY20, from 1.5x during FY19. 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 deteriorated and stood at 48.9x during FY20, from 103.9x during FY19. 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 declined and down at 51.9% during FY20, from 66.0% during FY20. 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 declined and down at 72.0% during FY20, from 98.1% during FY19. 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 declined and down at 11.7% during FY20, from 13.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.5 1.7
Debtors’ Days Days 4 10
Interest coverage x 103.9 48.9
Debt to equity ratio x 0.1 0.1
Return on assets % 13.8 11.7
Return on equity % 66.0 51.9
Return on capital employed % 98.1 72.0
* 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 236.8 to Rs 140.0, registering a loss of Rs 96.8 or around 40.9%.

Overall, the S&P BSE SENSEX is down 24.2% 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 FY20? How does it compare to earlier years?

The revenues of COAL INDIA stood at Rs 569,315 m in FY20, which was down -2.1% compared to Rs 581,302 m reported in FY19.

COAL INDIA's revenue has fallen from Rs 1,056,474 m in FY16 to Rs 569,315 m in FY20.

Over the past 5 years, the revenue of COAL INDIA has grown at a CAGR of -14.3%.

What was the net profit of COAL INDIA in FY20? How does it compare to earlier years?

The net profit of COAL INDIA stood at Rs 167,015 m in FY20, which was down -4.4% compared to Rs 174,664 m reported in FY19.

This compares to a net profit of Rs 70,380 m in FY18 and a net profit of Rs 92,815 m in FY17.

Over the past 5 years, COAL INDIA net profit has grown at a CAGR of 4.0%.

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 FY20 and stood at Rs 49,772 m as compared to Rs 163,555 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs 10,328 m as compared to Rs -78,965 m in FY19.
  • Cash flow from financial activity increased in FY20 and stood at Rs -47,909 m as compared to Rs -108,848 m in FY19.

Here's the cash flow statement of COAL INDIA for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations131,538164,608211,149163,55549,772
From Investments81,5414,546-77,469-78,96510,328
From Financial Activity-195,874-175,980-135,642-108,848-47,909
Net Cashflow17,205-6,825-1,962-24,25812,192

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 stood at 42.7% in FY20 as against 47.8% in FY19.
  • Net profit margins declined from 33.4% in FY19 to 33.1% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.1 as compared to 0.1 in FY19.

Here's the ratio/financial analysis of COAL INDIA for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)17.810.421.847.842.7
Net Profit Margin (%)14.58.217.633.433.1
Debt to Equity Ratio (x)0.00.00.10.10.1

Read: Latest Annual Report Analysis of COAL INDIA

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