Coal India Q1 Results Preview: PAT estimated to fall 27% YoY, commentary on company's transformation eyed

Coal India Q1 results preview: Coal India (CIL) is expected to post soft numbers for the quarter ended June 30, 2023, according to Zee Business Research. The company, which is slated to release its financial results for the three-month period today (August 8), is expected to post consolidated revenue of Rs 34,901 crore, down 0.5 per cent year-on-year (YoY). EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is estimated to drop 32 per cent YoY to Rs 8,326 crore, while the EBITDA margin is seen at 23.85 per cent against 35 per cent in the corresponding quarter of the previous fiscal year. Profit after tax (PAT) is seen at Rs 6,412 crore, down 27 per cent. The central public sector undertaking (CPSU) posted a net profit of Rs 8,833 crore in the year-ago period.

These aside, e-auction realisation is estimated at 105 per cent. Profit is likely to be under some pressure due to an increase in staff expenses. The management's commentary on the company's transformation will be key. Coal India's sequential results are expected to be better.

Meanwhile, as per reports, Coal India is rebranding itself and, in the process, may change its name to CIL Energy India. In 2010, the company garnered Rs 15,000 crore via its IPO. Till now, Coal India has rewarded its shareholders with dividends 24 times, which is worth Rs 223.75 crore, as per Zee Business Research.

Coal India production in July 2023 

Coal India posted a 13.4 per cent year-on-year rise in coal production at 53.6 million tonnes (MT) in July 2023. At 53.6 MT, the production was up by 6 MT from the 47.3 MT output of July last year. CIL's production soared to 229.1 MT till April–July 2023, 10.7 per cent higher compared to 207 MT in April-July 2022. The coal PSU has set a target to produce 780 MT of coal in FY24. In FY23, CIL produced 703 MT of coal. "All our subsidiaries have registered growth over the previous FY23, with SECL coming back strongly with a 10 MT production increase. READ MORE

Coal India's share price history

Shares of Coal India rose 8 per cent during the June 2023 quarter. In comparison, the Nifty50 index rallied 9.8 per cent during the window, Trendlyne data show.