Coal India Q2 Results Preview: Lower coal off-take, e-auction volumes & premiums to dent revenue, operating performance | Stock Market News
Source: Live Mint
Coal India Q2 Results Preview: Coal India Ltc, the state-run largest coal producer, is set to announce its financial results for the second quarter of FY25 on Friday, October 25.
Coal India is estimated to report weak earnings in the quarter ended September 2024, with a drop in revenue and operating due performance, led by fall in coal off-take due to the impact of strong monsoon witnessed during the quarter.
The company’s dispatches declined 16% YoY to 166 mt in Q2FY25. The company’s revenue for the quarter is expected to fall around 13% to ₹28,515 crore from ₹32,776.4 crore in the previous quarter, according to a Livemint poll of five brokerages.
Coal India Q2 earnings are not comparable with the same quarter last year owing to change in accounting policy for provision for overburden removal.
Axis Securities models a 50% e-auction premium as against 58% in Q1FY25 and 18% e-auction volumes versus 23% in Q1FY25.
“Lower total off-take and e-auction volumes and premiums will lead to a decline in revenue QoQ. On a YoY basis as well, a total offtake decline and lower e-auction premium will lead to a drop in revenue,” Axis Securities said.
Operating performance of Coal India during the September quarter also suffered due to lower volumes. Kotak Institutional Equities expects Coal India EBITDA in Q2FY25 to fall 35% QoQ to ₹5,338 crore, while EBITDA margin to contract by 859 basis points (bps) to 17.8%.
According to the brokerage house, blended realizations at ₹1,730 per tonne (flat YoY) in Q2FY25 reflect moderation in e-auction realizations to ₹2,500 per tonne (down 12% YoY).
Going ahead, management guidance on FY25 and FY26 volumes and e-auction premium and share will be key things to watch for, analysts said.
Coal India Stock Price
Coal India share price has shown a muted trend recently as the stock has fallen over 5% in one month and 3% in three months. Coal India stock price has gained more than 27% year-to-date (YTD), and over 56% in the past one year.
At 3:10 pm, Coal India shares were trading 0.55% higher at ₹476.95 apiece on the BSE.
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