Coal India - Q2 FY13 Results First Cut - Microsec

Coal India Ltd, announced its Q2FY13 results on 9th November, 2012.

The company arrived at net sales of INR14572.54 crore, which was up down by 10.83% on QoQ basis due to lower sales volume, but up by 11.68% on YoY basis. The EBITDA for the quarter was INR2861.66 crore, which was down by 40.56% on YoY basis, mainly due to 26% increase in employee costs and other expenses. On QoQ basis, the EBITDA was up by 15.52%. The EBITDA Margin was down by 954bps on QoQ basis, but up by 80bps on YoY basis. The company posted a net profit of INR3078.09 crore, which was down by 31.13% on QoQ basis, but up by 18.57% on YoY basis.

Coal Production for the quarter was 0.06MT as compared to 0.12MT in Q1FY13 and 0.05MT in Q2FY12.

Offtake Production for the quarter was 0.10MT as compared to 0.16MT in Q1FY13 and 0.14MT in Q2FY12.

Hence, on back of increased production in coming quarters and better realization, lower labour costs, we recommend a BUY rating on Coal India with a target price of INR433.10 per share.

Source : Equity Bulls

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