Coal India Q1 net seen up 1% at Rs 4,527 cr: Motilal Oswal
Motilal Oswal expects Coal India to report a 16.4 percent degrowth quarter-on-quarter (growth of 1.1 percent year-on-year) in net profit at Rs 4527.1 crore.
August 03, 2013 / 12:45 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the mining and minerals sector. The brokerage house expects Coal India to report a 16.4 percent degrowth quarter-on-quarter (growth of 1.1 percent year-on-year) in net profit at Rs 4,527.1 crore.
Revenues are expected to decrease by 11.7 percent Q-o-Q (up 6.5 percent Y-o-Y) to Rs 17,573.8 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 16.6 percent Q-o-Q (up 6 percent Y-o-Y) to Rs 5,104.7 crore.Motilal Oswal report on Coal IndiaWe expect revenue to grow 6.5 percent Y-o-Y to INR 175.7 billion and PAT to grow 1 percent Y-o-Y to INR 45.2 billion. We expect offtake/dispatches during the quarter at 115 million tonne (up 2 percent Y-o-Y).The RB Index has declined to USD 81/tonne from USD 85.8/tonne in 4QFY13. However, the INR has depreciated sequentially from INR 54/USD to INR 57/USD in 1QFY14 and lower international coal prices were neutralized by higher currency rates to a large extent. INR deprecation acts as a cushion to e-auction realizations.The ACQ realization is likely to be higher Y-o-Y in 1QFY14, as Coal India had taken a tariff hike effective from mid-May to compensate for the
decline in e-auction realizations and beneficiated coal.We expect Coal India to report consolidated PAT of INR 200 billion in FY14 (up 13.5 percent) and INR 210 billion in FY15 (up 4.7 percent). The stock trades at 9.1x FY15E earnings. 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!
