COAL INDIA 2021-22 Annual Report Analysis

Tue, 2 Aug

COAL INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

COAL INDIA Income Statement Analysis

• Operating income during the year rose 25.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.8% in FY22 as against 40.0% in FY21.
• Depreciation charges increased by 19.1% and finance costs decreased by 15.7% YoY, respectively.
• Other income declined by 1.6% YoY.
• Net profit for the year grew by 36.9% YoY.
• Net profit margins during the year grew from 27.7% in FY21 to 30.2% in FY22.

COAL INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	459,362	576,305	25.5%
Other income	Rs m	39,888	39,251	-1.6%
Total Revenues	Rs m	499,250	615,556	23.3%
Gross profit	Rs m	183,835	246,700	34.2%
Depreciation	Rs m	37,179	44,287	19.1%
Interest	Rs m	6,422	5,415	-15.7%
Profit before tax	Rs m	180,122	236,249	31.2%
Tax	Rs m	53,071	62,379	17.5%
Profit after tax	Rs m	127,051	173,870	36.9%
Gross profit margin	%	40.0	42.8
Effective tax rate	%	29.5	26.4
Net profit margin	%	27.7	30.2

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COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 574 billion as compared to Rs 506 billion in FY21, thereby witnessing an increase of 13.5%.
• Long-term debt stood at Rs 33 billion as compared to Rs 27 billion during FY21, a growth of 22.8%.
• Current assets rose 10% and stood at Rs 928 billion, while fixed assets rose 14% and stood at Rs 833 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1,761 billion as against Rs 1,577 billion during FY21, thereby witnessing a growth of 12%.

COAL INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	365,174	431,430	18.1
Current Liabilities	Rs m	505,869	574,027	13.5
Long-term Debt	Rs m	26,881	33,018	22.8
Total Liabilities	Rs m	1,577,135	1,761,052	11.7
Current assets	Rs m	847,533	928,430	9.5
Fixed Assets	Rs m	729,602	832,623	14.1
Total Assets	Rs m	1,577,135	1,761,052	11.7

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 411 billion, an improvement of 287.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -265 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -134 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 12 billion from the Rs 23 billion net cash flows seen during FY21.

COAL INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	105,924	410,875	287.9%
Cash Flow from Investing Activities	Rs m	1,819	-264,810	-
Cash Flow from Financing Activities	Rs m	-84,531	-134,412	-
Net Cash Flow	Rs m	23,212	11,652	-49.8%

Current Valuations for COAL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.2, an improvement from the EPS of Rs 20.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 214.2, stands at 7.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	74.5	93.5
TTM Earnings per share	Rs	20.6	28.2
Diluted earnings per share	Rs	20.6	28.2
Price to Cash Flow	x	4.9	4.6
TTM P/E ratio	x	6.3	7.6
Price / Book Value ratio	x	2.3	2.3
Market Cap	Rs m	839,518	1,008,530
Dividends per share (Unadj.)	Rs	16.0	17.0

Ratio Analysis for COAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.7x during FY21. 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 44.6x during FY22, from 29.0x during FY21. 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 40.3% during FY22, from 34.8% during FY22. 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 52.0% during FY22, from 47.6% during FY21. 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 10.2% during FY22, from 8.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.7	1.6
Debtors’ Days	Days	16	7
Interest coverage	x	29.0	44.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.5	10.2
Return on equity	%	34.8	40.3
Return on capital employed	%	47.6	52.0

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 up from Rs 143.9 to Rs 214.2, registering a gain of Rs 70.4 or around 48.9%.

Overall, the S&P BSE SENSEX is up 10.4% 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