COAL INDIA 2022-23 Annual Report Analysis

Wed, 2 Aug

COAL INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

COAL INDIA Income Statement Analysis

• Operating income during the year rose 36.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 46.9% in FY23 as against 42.8% in FY22.
• Depreciation charges increased by 5.6% and finance costs increased by 26.4% YoY, respectively.
• Other income grew by 69.3% YoY.
• Net profit for the year grew by 61.8% YoY.
• Net profit margins during the year grew from 30.2% in FY22 to 35.9% in FY23.

COAL INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	576,389	783,668	36.0%
Other income	Rs m	39,019	66,055	69.3%
Total Revenues	Rs m	615,408	849,723	38.1%
Gross profit	Rs m	246,845	367,549	48.9%
Depreciation	Rs m	44,287	46,753	5.6%
Interest	Rs m	5,415	6,843	26.4%
Profit before tax	Rs m	236,163	380,008	60.9%
Tax	Rs m	62,379	98,759	58.3%
Profit after tax	Rs m	173,784	281,249	61.8%
Gross profit margin	%	42.8	46.9
Effective tax rate	%	26.4	26.0
Net profit margin	%	30.2	35.9

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COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 687 billion as compared to Rs 572 billion in FY22, thereby witnessing an increase of 20.1%.
• Long-term debt stood at Rs 41 billion as compared to Rs 33 billion during FY22, a growth of 24.4%.
• Current assets rose 16% and stood at Rs 1,081 billion, while fixed assets rose 19% and stood at Rs 989 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2,070 billion as against Rs 1,761 billion during FY22, thereby witnessing a growth of 18%.

COAL INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	431,430	572,449	32.7
Current Liabilities	Rs m	572,085	687,346	20.1
Long-term Debt	Rs m	33,018	41,063	24.4
Total Liabilities	Rs m	1,761,093	2,070,297	17.6
Current assets	Rs m	928,460	1,080,827	16.4
Fixed Assets	Rs m	832,633	989,470	18.8
Total Assets	Rs m	1,761,093	2,070,297	17.6

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 357 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -234 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -137 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -14 billion from the Rs 20 billion net cash flows seen during FY22.

COAL INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	411,068	356,862	-13.2%
Cash Flow from Investing Activities	Rs m	-257,145	-234,230	-
Cash Flow from Financing Activities	Rs m	-134,412	-136,611	-
Net Cash Flow	Rs m	19,510	-13,979	-

Current Valuations for COAL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.6, an improvement from the EPS of Rs 28.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 234.9, stands at 5.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	93.5	127.2
TTM Earnings per share	Rs	28.2	45.6
Diluted earnings per share	Rs	28.2	45.6
Price to Cash Flow	x	5.2	4.0
TTM P/E ratio	x	6.5	5.1
Price / Book Value ratio	x	2.3	2.3
Market Cap	Rs m	1,008,530	1,318,978
Dividends per share (Unadj.)	Rs	17.0	24.3

Ratio Analysis for COAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.6x during FY22. 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 56.5x during FY23, from 44.6x during FY22. 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 49.1% during FY23, from 40.3% during FY23. 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 63.1% during FY23, from 52.0% during FY22. 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 13.9% during FY23, from 10.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.6	1.6
Debtors’ Days	Days	7	6
Interest coverage	x	44.6	56.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.2	13.9
Return on equity	%	40.3	49.1
Return on capital employed	%	52.0	63.1

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 up from Rs 215.2 to Rs 234.9, registering a gain of Rs 19.8 or around 9.2%.

Overall, the S&P BSE SENSEX is up 13.2% over the year.

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