Coal India Q4 preview: Maharatna PSU to post results soon; here's what to expect

The state-run Maharatna company Coal India is all set to release its March quarter earnings on Thursday (May 2, 2024).  Zee Business research desk estimates the leading pure-play global coal producer to report a mixed set of earnings. The PSU is expected to log consolidated profit after tax (PAT) growth of 31 per cent on year at Rs 7217 crore as against Rs 5533 crore in the corresponding quarter of the previous year.

The growth in PAT is anticipated even as the consolidated revenue will see a decline of 5 per cent on year to Rs 36,330 crore in comparison to Rs 38,152 crore in Q4FY23. The desk maintains that due to wage revision  to the tune of Rs 5870 crore in the previous year, Q4 earnings cannot be compared on a year-on-year basis.

EBITDA or Earnings before interest, taxes, depreciation and amortization, a metric of the company’s overall financial health, is seen logging a 23 per cent growth during the quarter under review at Rs 8498 crore as against Rs 6898 crore in the same quarter last year. Also, operating margin is expected to come in better at 23.4 per cent versus 18 per cent during the same period last year.Furthermore, the desk expects the e-auction premium to remain at 40 per cent. Earlier in an earnings call, the company’s management held that e-auction premiums for FY24 are expected at around 80 per cent.

Capex at all-time high

The company in its recent stock exchange filing informed that the company’s capital expenditure as a whole has risen by 6.5 per cent on year to Rs 19,840 crore ending FY24, the highest till date. 

Q3FY2024 results

On the back of positive performance, the company posted consolidated PAT of Rs 9094 crore during the third quarter ending December 2023, of FY 2024, posting a robust 18% year-on-year growth. This was the highest PAT earning during the third quarter of any year since the company’s listing. In absolute volume the PAT jumped by Rs.1,375 crores compared to Rs. 7,719 crores of October-December 2022 period. Consolidated revenue from operations during Q3 FY 2024 went up to Rs. 36,154 Crores marking a 3% growth over Rs.35,169 crore of corresponding period previous fiscal.

Coal India share price performance

Coal India shares have rallied 95 per cent in the last one year and in the previous trade ended 0.2 per cent higher at Rs 454.3, gaining as much as 103.5 per cent from its 52-week low.