Coal India Q1 Results: Profit Misses Estimates On Lower Sales And Other Income

Coal India Ltd.’s quarterly profit declined, missing estimates, as sales and other income fell.

Net profit fell 31% sequentially to Rs 3,169.8 crore in the quarter ended June, the world’s largest coal miner said in an exchange filing. That compares with the Rs 3,973-crore consensus estimate of analysts tracked by Bloomberg.

Q1 FY22 Highlights (QoQ)

• Revenue fell 5.3% to Rs 25,282 crore, against the estimated Rs 25,658.8 crore.

• Operating profit fell 24.1% to Rs 4,843.89 crore.

• Margin narrowed to 19.2% from 23.9%.

• Other income fell 46.5% to Rs 680.1 crore.

The state-owned miner’s power expenses remained stable at 2.4%, while contractual costs fell to 15% of revenue from 18% in the preceding three months. Employee benefit expenses, however, rose to 41% of revenue from 39.9% as of March.

• Coal India reported raw sales volume of 160.4 million tonnes in the first quarter compared with 164.8 million tonnes in the previous three months.

• Its total average realisation was down 2.2% sequentially to Rs 1,450.8 a tonne.

• Fuel supply agreement realisation remained flat at Rs 1,394 a tonne.

• E-auction realisations were down 10.4% quarter-on-quarter at Rs 1,569.

The decline in realisation, according to Antique Stock Broking, could be because of a different mix of coal, lower impact of performance incentives; and lesser penalties.

Shares of Coal India closed 0.73% lower before the results were announced compared with a 0.13% gain in the benchmark Nifty 50.