State-owned Coal India is expected to report double-digit decline YoY in profit and operating income for the quarter ended March 2020 due to absence of volume growth, though tax rate is lower for the quarter.
Revenue from operations and blended realisation during the quarter could decline 4-6 percent compared to same period last year.
"The absence of volume growth with dispatches of 164 million tonnes (flat YoY, up 16 percent QoQ) in Q4FY20 will likely lead to weak earnings performance as high employee cost will weigh in an environment of weak volumes," said Kotak Institutional Equities which expects profit to decline 16 percent and 4 percent fall in Q4 revenue YoY.
The brokerage feels blended realizations will decline 4 percent YoY in Q4FY20 primarily driven by lower e-auction volumes.
According to Narnolia Financial Services, too, revenue is expected to decline 8 percent largely on account of lower realization and flattish off-take volume in Q4FY20.
On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to decline 33 percent with 370 bps fall in margin, said the brokerage, adding reduced volume along with flat realization impacted the EBITDA in value terms.
Find All Earnings Related News Here
According to Kotak, EBITDA may fall 23 percent and margin may decline 475 bps compared to same quarter last year.
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!
