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Coal India, which announces its results for September quarter on November 12, is likely to report a seasonally weak quarter, but brokerages remain mixed on its realizations.
Price hike for coal as well as better e-auctions could boost its realizations.
Here is a gist of what brokerages expect from the company for Q2.
Brokerage: Kotak Institutional Equities | PAT: Rs 2,15.3 crore
The brokerage house expects blended realizations to improve to Rs 1,476 per tone for the September quarter against Rs 1,328 per tone last year. This is on the back of increase in notified prices of coal as well as better e-auction realizations.
It sees 4% YoY volume growth with dispatches of 137 million tonnes in Q2FY19.
Brokerage: Emkay | PAT: Rs 3,078.9 crore
Emkay expects realizations to remain flat at Rs 1,365/tonne depending on the actual realizations and the impact of measures taken to improve revenue.
This quarter will remain under pressure due to seasonality.
Brokerage: ICICI Securities | PAT: Rs 3,470 crore
ICICI Securities expects the topline to increase 17.1% YoY, decline 12.4% QoQ. The operating profit is likely to increase 234.6% YoY, down 28.2% QoQ. The EBITDA margin is likely to come in at 19.4%.
Brokerage: Motilal Oswal | PAT: Rs 3,148.5 crore
Motilal Oswal expects Coal India’s EBITDA (ex-OBR) to increase 104% YoY to Rs 6,970 crore on higher realization and volumes. FSA realization is estimated to increase 10% YoY to Rs 1,322/tonne on benefit of price hike.
Key issues to watch for
E-auction volumes and realization.
Global coal prices.
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