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Coal India FY16 NIMs to be same as FY15: Morningstar Inv

Coal India's total income for fourth quarter of FY15 rose up 3.8 percent to Rs 21,399 crore. Piyush Jain of Morningstar Investment discusses the results with CNBC-TV18.

May 28, 2015 / 07:11 PM IST
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Coal India's fourth quarter total income stood at Rs 21,399 crore up 3.8 percent compared to Rs 20,564 crore in the corresponding quarter of last fiscal.. 

Net profit of the company declined to Rs 4,240 due to increase in outgoing taxes. Operating margins are at 27.9 percent. 

Operating margins of the company are in line according to Piyush Jain of Morningstar Investment. The company has done slightly better than estimations, he said.

Margins for the coming year are expected to be same as 2014. Jain told CNBC-TV18 that aggressive pricing is not a possibility, but it sees 13-14 percent volume growth in five years.

Jain has put stock price at Rs 380 post the company’s results.


Below is the transcript of Piyush Jain’s interview with CNBC-TV18’s Nigel D’Souza and Kritika Saxena.

Nigel: On the topline, big beat over there. You estimate that the e-auction volumes were much better?

A: Topline seems to be inline with what we were expecting. However, the net profit number is quite low. Our expectation was somewhere around Rs 4800 crore. It appears that the cost pressures have played a part.

Nigel: We just have margins as well. We don’t have the fine print, but we have margins that have come in close towards 28 percent. So, it could be that in fact the margins are a bit of beat. The off tick number, we always knew was closer towards a 135 million tonnes approximately. At around 27-28 percent, were you expecting these margins?

A: Yes, margins for us were around 27.2 percent like what we were forecasting. If 28 percent is the margin, then it is a beat.

Nigel: Yes, 27.9 percent we have our team that has in fact calculated those numbers. So that appears like a bit of beat. At 28 percent do you believe that in fact this is better or is it more or less in line?

A: It is slightly better than what we were estimating, but probably we will just need to take a look what were the net profit numbers.

Nigel: Just give us a couple of numbers, what were you estimating for their incentives that will come in this quarter? What is that number you are looking at Rs 800, Rs 900 crore because that will come in at the topline as well and that appears to come in at the higher end of what the street was estimating?

A: Yes, around Rs 850 crore.

Nigel: E-auction volumes, what were you looking at?

A: E-auction volumes we were looking roughly around 12. I think it should be coming somewhere around that. However I think there should be something else because operating margins seem to be pretty much inline.

first published: May 28, 2015 05:59 pm
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