COAL INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

COAL INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

COAL INDIA Income Statement Analysis

• Operating income during the year fell 9.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 39.9% in FY21 as against 42.7% in FY20.
• Depreciation charges increased by 7.5% and finance costs increased by 28.2% YoY, respectively.
• Other income declined by 37.4% YoY.
• Net profit for the year declined by 23.9% YoY.
• Net profit margins during the year declined from 33.1% in FY20 to 27.7% in FY21.

COAL INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	504,854	459,362	-9.0%
Other income	Rs m	64,462	40,383	-37.4%
Total Revenues	Rs m	569,315	499,746	-12.2%
Gross profit	Rs m	215,801	183,275	-15.1%
Depreciation	Rs m	34,508	37,089	7.5%
Interest	Rs m	5,029	6,447	28.2%
Profit before tax	Rs m	240,725	180,122	-25.2%
Tax	Rs m	73,710	53,071	-28.0%
Profit after tax	Rs m	167,015	127,051	-23.9%
Gross profit margin	%	42.7	39.9
Effective tax rate	%	30.6	29.5
Net profit margin	%	33.1	27.7

COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 516 billion as compared to Rs 491 billion in FY20, thereby witnessing an increase of 5.2%.
• Long-term debt stood at Rs 27 billion as compared to Rs 20 billion during FY20, a growth of 34.9%.
• Current assets rose 1% and stood at Rs 847 billion, while fixed assets rose 16% and stood at Rs 730 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 1,577 billion as against Rs 1,467 billion during FY20, thereby witnessing a growth of 8%.

COAL INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	321,569	365,174	13.6
Current Liabilities	Rs m	490,683	516,429	5.2
Long-term Debt	Rs m	19,934	26,881	34.9
Total Liabilities	Rs m	1,467,095	1,577,203	7.5
Current assets	Rs m	836,876	847,249	1.2
Fixed Assets	Rs m	630,219	729,954	15.8
Total Assets	Rs m	1,467,095	1,577,203	7.5

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 106 billion, an improvement of 112.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -85 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 24 billion from the Rs 12 billion net cash flows seen during FY20.

COAL INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	49,772	105,599	112.2%
Cash Flow from Investing Activities	Rs m	10,328	3,389	-67.2%
Cash Flow from Financing Activities	Rs m	-47,909	-84,554	-
Net Cash Flow	Rs m	12,192	24,433	100.4%

Current Valuations for COAL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an decline from the EPS of Rs 27.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 130.4, stands at 6.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	81.9	74.5
TTM Earnings per share	Rs	27.1	20.6
Diluted earnings per share	Rs	27.1	20.6
Price to Cash Flow	x	4.3	5.1
TTM P/E ratio	x	5.2	6.3
Price / Book Value ratio	x	3.7	2.3
Market Cap	Rs m	1,202,348	839,518
Dividends per share (Unadj.)	Rs	12.0	16.0

Ratio Analysis for COAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY21, from 1.7x during FY20. 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 28.9x during FY21, from 48.9x during FY20. 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 34.8% during FY21, from 51.9% during FY21. 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 47.6% during FY21, from 72.0% during FY20. 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 8.5% during FY21, from 11.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.7	1.6
Debtors’ Days	Days	10	16
Interest coverage	x	48.9	28.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.7	8.5
Return on equity	%	51.9	34.8
Return on capital employed	%	72.0	47.6

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 140.0 to Rs 130.4, registering a loss of Rs 9.6 or around 6.9%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of COAL INDIA