COAL INDIA 2019-20 Annual Report Analysis

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COAL INDIA 2019-20 Annual Report Analysis
Wed, 4 Nov

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 3.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.5% in FY20 as against 26.9% in FY19.
  • Depreciation charges increased by 0.0% and finance costs increased by 90.7% YoY, respectively.
  • Other income grew by 4.6% YoY.
  • Net profit for the year declined by 4.4% YoY.
  • Net profit margins during the year declined from 17.7% in FY19 to 17.5% in FY20.

COAL INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 928,961 893,733 -3.8%
Other income Rs m 58,371 61,054 4.6%
Total Revenues Rs m 987,331 954,787 -3.3%
Gross profit Rs m 250,059 219,209 -12.3%
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 174,644 167,003 -4.4%
Gross profit margin % 26.9 24.5
Effective tax rate % 35.6 30.6
Net profit margin % 17.7 17.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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COAL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 485 billion as compared to Rs 461 billion in FY19, thereby witnessing an increase of 5.1%.
  • 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 835 billion, while fixed assets rose 7% and stood at Rs 451 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 1,500 billion as against Rs 1,330 billion during FY19, thereby witnessing a growth of 13%.

COAL INDIA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 264,539 321,569 21.6
 
Current Liabilities Rs m 460,978 484,637 5.1
Long-term Debt Rs m 14,723 19,934 35.4
Total Liabilities Rs m 1,330,215 1,500,215 12.8
 
Current assets Rs m 696,714 835,122 19.9
Fixed Assets Rs m 422,726 451,119 6.7
Total Assets Rs m 1,330,215 1,500,215 12.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



COAL INDIA Cash Flow Statement Analysis

  • COAL INDIA's cash flow from operating activities (CFO) during FY20 stood at Rs 41 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -70 billion, an improvement of 36% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -25 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 41,465 -74.6%
Cash Flow from Investing Activities Rs m -78,965 3,324 -
Cash Flow from Financing Activities Rs m -108,848 -69,502 -
Net Cash Flow Rs m -24,258 -24,712 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 115.5, stands at 5.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.6 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 150.7 145.0
TTM Earnings per share Rs 28.3 27.1
Diluted earnings per share Rs 27.6 26.4
Price to Cash Flow x 3.4 3.6
TTM P/E ratio x 5.0 5.2
Price / Book Value ratio x 6.0 3.7
Market Cap Rs m 711,487 729,224
Dividends per share (Unadj.) Rs 13.1 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 11.5% during FY20, from 13.3% 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 22 59
Interest coverage x 103.9 48.9
Debt to equity ratio x 0.1 0.1
Return on assets % 13.3 11.5
Return on equity % 66.0 51.9
Return on capital employed % 98.1 72.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 215.1 to Rs 115.5, registering a loss of Rs 99.6 or around 46.3%.

Overall, the S&P BSE SENSEX is up 0.3% over the year.

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

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COAL INDIA Announces Quarterly Results (2QFY21); Net Profit Down 16.3% (Quarterly Result Update)

Nov 25, 2020 | Updated on Nov 25, 2020

For the quarter ended September 2020, COAL INDIA has posted a net profit of Rs 30 bn (down 16.3% YoY). Sales on the other hand came in at Rs 212 bn (up 3.8% YoY). Read on for a complete analysis of COAL INDIA's quarterly results.

COAL INDIA Announces Quarterly Results (1QFY21); Net Profit Down 55.1% (Quarterly Result Update)

Sep 23, 2020 | Updated on Sep 23, 2020

For the quarter ended June 2020, COAL INDIA has posted a net profit of Rs 21 bn (down 55.1% YoY). Sales on the other hand came in at Rs 185 bn (down 25.9% YoY). Read on for a complete analysis of COAL INDIA's quarterly results.

COAL INDIA 2018-19 Annual Report Analysis (Annual Result Update)

Jul 22, 2019 | Updated on Jul 22, 2019

Here's an analysis of the annual report of COAL INDIA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of COAL INDIA. Also includes updates on the valuation of COAL INDIA.

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