Coal India Q1 Review - Good Performance Adjusted For One-Offs: ICICI Securities
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ICICI Securities Report
Coal India Ltd.’s reported profit after tax for Q1 FY22 was slightly below estimate at Rs 31.7 billion albeit up 52.8% YoY on a low base (our estimate: Rs 35.5 billion).
However, Coal India's adjusted profit after tax at Rs 36.2 billion rose 74% YoY due to a one-time charge of Rs 6 billion (pre-tax) on actuarial valuation of higher medical benefits to retired employees (increased from Rs 0.5 million to Rs 0.8 million per retiree for 0.21 million retirees), as recommended by the Comptroller and Auditor General.
Revenues were robust at Rs 252.8 billion, up 36.8% YoY, on strong volumes.
Higher diesel expenses, higher depreciation and lower other income were the other major reasons offsetting higher volumes.
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