Coal India Q2 Results: Net Profit Dips But Ebitda Rises In ‘Unlock’ Quarter
Quarterly profit of the world’s largest coal miner profit fell on lower realisations from online auctions, but operating income rose in the first full quarter of operations after India eased lockdown curbs.
Net profit of Coal India Ltd. declined 16.3% year-on-year to Rs 2,948 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 2,817-crore consensus estimate of analysts tracked by Bloomberg.
Its revenue rose 3.7% over the year earlier to Rs 21,153 crore, in line with the Rs 20,618.4-crore forecast. E-auction realisation dropped 29% to Rs 1,437 per tonne, against the estimated Rs 1,664 a tonne.
Coal India Q2 Results 2020-21: Other Highlights (year-on-year)
- Earnings before interest, tax, depreciation and amortisation—or operating profit—rose 10% to Rs 3,974.8 crore, compared with the Rs 3,658-crore estimate.
- Operating margin expanded 110 basis points to 18.7%. Flat repair and power expenses offset the rise in employee costs, cushioning the margin.
- Employee expenses accounted for 47% of sales in the July-September quarter compared with 44% a year ago.
Coal India reported a 9.7% rise in overall volumes in the quarter ended September. That was led by higher e-auction volumes as the company forgo premium to boost sales as reflected in e-auction realisations. But decent FSA volumes kept blended realisation in check.
Shares of Coal India closed 0.9% higher before the quarterly results were announced compared with a 0.93% gain in the benchmark Nifty 50.