Coal India Q2 Profit Falls For The Sixth Straight Quarter
High raw material costs weighed on Coal India’s margins.
Coal India Ltd.’s second quarter earnings missed analyst estimates on all parameters as net profit declined for the sixth straight quarter and high raw material cost weighed on margins.
Net profit fell 40 percent from a year ago to Rs 368.9 crore for the quarter ended September, the company said in a stock exchange filing today. This was way below the Bloomberg consensus estimates of Rs 2,033.5 crore. Revenue of the world’s largest coal miner rose 11.7 percent to Rs 18,148 crore but still fell short of the Rs 18,537 crore forecast.
Earnings before interest, tax, depreciation and amortisation rose 56 percent to Rs 1,230.9 crore. Margin expanded 187 basis points to 6.7 percent on a year-on-year basis but missed estimates on account of an increase in the raw material cost.
- Total cost of the Kolkata-based miner rose marginally to Rs 17,730 crore.
- Raw material cost jumped 40 percent year-on-year to Rs 3,075 crore.
- Raw material as a percentage of net sales increased to 16.94 percent from 13.6 percent in the same quarter last year.
- Other Income declined 56 percent to Rs 610.70 crore year-on-year.
