Coal India Q4 PAT seen up 42% at Rs 3734 cr
Coal India is to announce its fourth quarter results. According to CNBC-TV18's estimates, Q4FY11 sales are seen up 14% at Rs 14430 crore versus Rs 12692 crore, quarter-on-quarter, (q-o-q).
Coal India is to announce its fourth quarter results. According to CNBC-TV18's estimates, Q4FY11 sales are seen up 14% at Rs 14430 crore versus Rs 12692 crore, quarter-on-quarter, (q-o-q).
Its EBITDA is seen up 41% at Rs 4768 crore versus Rs 3375 crore.Its EBITDA margin is seen at 33% versus 27%.The company's PAT is seen up 42% at Rs 3734 crore versus Rs 2626 crore.(Note that historical quarterly financials are not available for prior periods and hence there is limited information on seasonality of costs and profits on a quarterly basis)Factors at Play:Dispatches may increase 5% QoQ (company says dispatches up 8.8% y-o-y) and realizations to increase 6.2% QoQ Company increased coal prices of Grade A & Grade B coal by 30% on Feb 27, 2011Price increase is partly to offset cost increases (~10% YoY) given increased staff costs (Dearness allowance increased by 50%) and other costs. Employees Wages and Benefits in FY11Q3 at Rs 4500 crore, should come in much higherGlobal coal prices have increased 20%+ since 3QFY11, and could lead to improved realizations for e-auctions. Have 70 million tonne of coal stocks that we had at the end of previous fiscal. 70 million tonne of coal stock translates to nearly 1/6th of our production merely 2 months production which is undesirable. There is an issue of movement of coal from the pithead to the consuming centers. Have been able to liquidate 4.5 million tonne of coal from stocks recentlyProduction:Coal India reported flat production of 431mt for FY11(unchanged YoY)Down 6.5% from its target driven by project delays and infrastructure constraints. Production in FY11 was estimated at approx 440m tonsRaised selling prices to selective customers in Q4 FY11 to offset lower production. The new pricing mechanism would offer more exposure to the spot coal market Expect spot-based sales volumes to rise to 23% in FY12 from 16% in FY11.Production target for FY12 at 452mtFurther Price Hike on cards:Co may raise price of coal from July 1, 2011To increase prices to offset wage hikeTo decide on price hike by end of JuneCompany to decide on another price hike post wage increase which may Increase wages by 30% In FY12To accommodate the proposed proposed mining billTotal Wage Bill Increase At 32% In FY11Indian Railways:Indian Railways have increased the availability of rakes. In April 2010 the average rakes availability was 158 per day and this year April it has been 180 per day, which is about 22 rakes per day availability increase. Hoping this trend continues as it will help in liquidating stock Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
