ICICI Securities has come out with its first quarter (April-June) earnings estimates for the power and coal sector. The brokerage house expects Coal India to report a 14.6 percent degrowth quarter-on-quarter (down of 3.6 percent year-on-year) in net profit at Rs 3627.6 crore.Sales are expected to decrease by 9.1 percent Q-o-Q (down 0.5 percent Y-o-Y) to Rs 18866.4 crore, according to ICICI Securities.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 12.2 percent Q-o-Q (down 2.0 percent Y-o-Y) to Rs 4293.1 crore.ICICI Securities's report on Coal IndiaQ1FY17 revenue likely to slightly decline (0.5 percent Y-o-Y) as marginal increase in offtake (+2.9 percent Y-o-Y) is likely to be offset by 3.3percent Y-o-Y fall in average realisations. Weakness in end markets, cheap imported coal and low bidding intensity are likely to impact e-auction premiums significantly (29.4 percent down Y-o-Y).Implementation of IND-AS will do away with the requirement of providing for OB removal. However, we expect Q1FY17 EBITDA to be 2 percent lower Y-o-Y due to combined impact of weaker revenue and increase in employee cost, contractual expenses etc.Other income is expected to be 9 percent lower Y-o-Y due to cash outflow post dividend payment and fall in interest rates.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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