Coal India, the world's largest coal producer, will declare its third quarter (October-December) earnings today. According to CNBC-TV18 poll, analysts expect profit after tax to fall 13.5 percent to Rs 3,800 crore compared to a year-ago period.
Earnings expectations Q3FY14 Y-o-Y-Net sales may decline 2 percent to Rs 17,000 crore versus Rs 17,325 crore-EBITDA is seen falling 9 percent to Rs 3,890 crore versus Rs 4,288.3 crore-EBITDA margin may slip to 22.9 percent versus 24.8 percent
Coal India’s volumes will be hit due to extended monsoons, after effect of cyclone Phiallin hitting production and strike at its mines
VolumeAnalysts expect volume degrowth of 3 percent Y-o-Y mainly due to cyclone-related disruptions. Volume should come in approximately at 117 million tonne, down 2.9 percent year-on-year and up 7.2 percent quarter-on-quarter.
EBITDA decline mainly due to lower volume and cost pressures:-Volume decline (3 percent Y-o-Y) will take away benefits of price hike-Cost per tonne is expected to increase due to higher diesel cost and hike in contractual expenses-Firm cost inflation (employee, power, fuel cost) will result in decline in EBITDA/PAT
Key issues to watch out for-Volumes, realisation trend for Q3 and guidance for FY14/15-E-auction and annual contracted quantity (ACQ) mix guidance for FY14/15
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