Coal India results today: Here is what to expect from Q4 earnings

Strong Volume growth

COAL dispatches grew 7.7% year-on-year to 202 cardinal tonne successful 4QFY24. The beardown request from the powerfulness assemblage portion has been driving sales, ember India excessively has been gathering the request with rising production. 

Coal India FY24 accumulation astatine 703.2 cardinal tonne grew 10% arsenic income astatine 694.7 cardinal tonne grew 8.5% year-on-year.\

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FY25 has started connected a beardown enactment with Coal India accumulation astatine 61.8 cardinal tonne rising 7.3% year-on-year. Sales measurement astatine 64.3 cardinal tonne outpaced accumulation and contempt precocious basal of 62.3 mt could emergence 3.2% year-on-year.

The rising accumulation volumes are affirmative for income maturation successful the unfastened marketplace excessively aft having met request nether Fuel proviso agreements to the powerfulness sector. The e-auction are  more profitable. 

E-auction premiums and Q4 expectations

The e-auction premium for Coal India had stood astatine 117% successful 3QFY24, though whitethorn person travel down with the planetary ember prices and rising supplies nevertheless they are inactive expected to beryllium steadfast (around 53%) successful 4QFY24 and astir 90% for FY24 arsenic per estimates of analysts astatine Motilal Oswal Financial Services. 

The Blended realizations are expected to travel astatine Rs1,64 per ton successful 4QFY24, reflecting the terms summation taken for high-grade ember from end-May 2023, said analysts astatine Kotak Institutional Equities.

Better blended realizations and steadfast maturation successful dispatches to 202 cardinal tons (up 8% twelvemonth connected year) successful 4QFY24 is thereby expected to pb nett net astatine ₹5527.6 crore emergence 37% year-on-year arsenic favored Kotak estimates.  Analysts astatine Motilal Oswal besides expect nett net astatine adjacent to ₹5500 Crore during Q4 FY24

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Earnings nevertheless are not comparable with the aforesaid 4th past twelvemonth owed to the proviso of ₹5800 Crore taken successful 4QFY23 connected relationship of wage revision, highlighted analysts.

Factors to watchout for

Meanwhile analysts stay watchful connected management's guidance connected output moving forward, and trajectory of e- auction volumes, and premium that stay important for Coal India's profitability maturation successful the adjacent term.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions

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Published: 02 May 2024, 12:22 PM IST