Coal India Q2 Review- Good Volume Growth, But Costs Hurt; Price Hike Is The Need Of The Hour: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Coal India Ltd.’s reported profit after tax for Q2 FY22 was down 0.6% YoY at Rs 29.3 billion. However, adjusted profit after tax at Rs 32.3 billion was 9.4% YoY higher due to a one-time charge of Rs 4 billion (pre-tax) on actuarial valuation of higher medical benefits to retired employees, as recommended by the Comptroller and Auditor General (Rs 6 billion in Q1 FY22). Further, higher diesel and explosive costs, higher depreciation and lower other income were other major reasons offsetting the higher volumes. These factors we believe may compel Coal India to undertake price hikes in the next few months. Revenues were robust at Rs 233 billion, up 10.1% YoY, on 9.4% YoY growth in offtake volumes to 147 million tonne. Average realisation was flat at Rs 1,448/tonne though e-auction realisations improved 10.9% YoY. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Coal India Q2 Review- Good Volume Growth, But Costs Hurt; Price Hike Is The Need Of The Hour: ICICI Securities

Coal India Q2 Review- Good Volume Growth, But Costs Hurt; Price Hike Is The Need Of The Hour: ICICI Securities

Choose a plan