Feb 20, 2012, 03.30 PM | Source: Moneycontrol.com
Angel Broking has maintained neutral rating on Coal India, in its February 15, 2012 research report.
, Angel Broking |
“Coal India’s (CIL) 3QFY2012 top-line was below our expectations; however, bottom-line beat our estimates on account of lower-than-expected staff cost and higher-than-expected other income. We maintain our Neutral view on the stock.”
“CIL’s 3QFY2012 net sales increased by 21.0% yoy to Rs15,349cr (below our estimate of Rs17,664cr) primarily due to higher average realization. Blended average realization on coal sales increased by 21.2% yoy to Rs1,392/tonne; however, offtake stood flat yoy at 110mn tonnes. Production grew by 1.4% yoy to 115mn tonnes. CIL’s EBITDA per tonne increased by 40.9% yoy to Rs442 in 3QFY2012 on account of higher realization. The company’s EBITDA increased by 40.6% yoy to Rs4,875cr, representing an EBITDA margin of 31.8%. Other income grew by 48.4% yoy to Rs1,856cr on account of higher cash balance and increased treasury yield. Hence, adjusted net income grew by 53.5% yoy to Rs4,043cr (above our estimate of Rs3,650cr).”
“CIL’s 9MFY2012 production stood at 291mn tonnes; hence, it is unlikely to meet its FY2012 production target of 440mn tonnes in our view. Further, we believe that infrastructural bottlenecks (mainly availability of railway rakes) are likely to result in only 2.5% and 4.9% yoy growth in sales volumes during FY2012 and FY2013, respectively. Moreover, higher staff costs are expected to hit CIL’s operating margins during FY2013. Hence, we maintain Neutral rating on the stock,” says Angel Broking research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
CCL registers 12% growth in coal production
An arm of Coal India, CCL is the only coal company
Coal India Q3 profit rises 14% on strong EBITDA; revenue down 7%
Revenue declined 6.8 percent to Rs 18,971.5 crore
Coal India Q3 net seen up 8% led by strong volume growth
Topline growth may be led by strong volume growth
Trade unions put Coal India on notice for one-day token strike
The charter of demands also included increasing im
Power Ministry pledges Rs 140 cr for sports activites, infra
The PSUs under the power ministry, particularly th
Coal India to provide short-term linkages to end-use plants
The development comes after government approved al
Coral India Finance & Housing: Updates on outcome of board meeting
Coral India Finance & Housing has informed that Ms
Panasonic Energy India Company: Outcome of board meeting
Panasonic Energy India Company's at its meeting he