Coal India Q2 PAT seen up 21.5% YoY to Rs 3150 cr

Country's largest coal mining company Coal India's (CIL) profit after tax is expected to rise by 21.5 percent year-on-year to Rs 3,150 crore in the second quarter of current financial year.

Net sales are seen going up by 13 percent to Rs 14,820 crore from Rs 13,148.1 crore during the same period.

Analysts feel the earnings before interest, tax, depreciation and amortisation (EBITDA) will increase 23 percent YoY to Rs 3,050 crore in the three months period ended September 2012.

EBITDA margin is seen rising 180 basis points year-on-year to 20.6 percent for the quarter.

Sales volumes are expected to be stronger on a YoY basis:

Analysts on an average feel the CIL is likely to report strong year-on-year growth of 10.8 percent to 89 MT in production and 8.8 percent to 102 MT in dispatches that implies an inventory dilution of 13 MT in the quarter as against 13.4 MT in a year ago period. In Q1FY13, liquidation stood at 10.54 MT.

On a sequential basis, owing to seasonality, analysts expect production and dispatch volumes to decline 13 percent and 10.2 percent.

The management had targeted sales volumes of 113 MT in the second quarter of current financial year, but sales volumes will come in much lower due to heavy rains and flooding, say analysts.

Sales volume growth will be aided due to better rake availability of 190 rakes/per day on an average.

Realizations are likely to come in 1-2 percent lower in second quarter on a QoQ basis but rise 3 percent YoY owing to price revisions at WCL (contributes 10 percent of sales volume).