Motilal Oswal: Coal India Q1 Review - Negative Operating Leverage Kicks In

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Coal India Ltd.’s Q1 FY21 results highlight the impact of lower volumes, e-auction realisations amid subdued thermal power demand.Adjusted Ebitda (excluding overburden removal) was down 63% YoY. Muted power demand has impacted off-take and e-auction realisations.However, we expect Coal India to tide over the situation given its large cash position (Net cash: approximately Rs 230 billion).Management commentary: Receivables situation slowly improving - Coal India’s management has noted that the company’s receivables have increased to Rs 230 billion in Q1 FY21 from Rs 178 billion at end-FY20.However, these receivables have decreased to Rs 210 billion at the end of August 2020. The Company expects the situation on receivables to improve further and normalise from October 2020.Coal India is focusing on import substitution and targeting approximately 100 million tonne under the same.It is planning approximately 75 million tonne of coal for the non-regulated sector and would seek to provide better quality of coal..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 brokerage 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.

Motilal Oswal: Coal India Q1 Review - Negative Operating Leverage Kicks In

Motilal Oswal: Coal India Q1 Review - Negative Operating Leverage Kicks In

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