Views on on Coal India 1QFY2016 Results: Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst - Metal & Mining, Angel Broking) on Coal India 1QFY2016 Results:

Coal India (CIL) 1QFY2016 Results First cut: Revenue in-line with estimates, EBITDA 12% below our estimate

"Coal India 1QFY2016 revenues increased 6.5% yoy to INR 18,955cr, 1% below our estimate of INR 19,121cr. The company reported a production growth of 12% to ~121MT for the quarter, well ahead of our expectations of 9%. Offtake volumes also improved significantly this quarter (8.3% vs. 3.8% in FY15) to 129.5MT. Material cost per tonne was in-line with expectations at INR 168/t as against our estimate of INR 165/t. Employee expenses were 4.5% lower than our estimate at INR 7,1852cr. Contractual expenses came in significantly higher at INR 2,490cr vs our estimate of INR 1695cr. This dragged down the EBITDA margin to 23.1% as against 26% in 4Q2015 and our expectation of 26.1%. EBITDA increased just 2.4% yoy to INR 4,382cr as against our estimate of INR 4,984cr. Lower other income was partially offset by lower than expected depreciation and tax expense, resulting in a net profit of INR 3764cr, vs. our estimate of INR 4,498cr. We await further information from management regarding volume mix, E-auction realisations and production & capex guidance."

Shares of COAL INDIA LTD. was last trading in BSE at Rs.377.1 as compared to the previous close of Rs. 371.45. The total number of shares traded during the day was 472258 in over 8111 trades.

The stock hit an intraday high of Rs. 378.75 and intraday low of 365.2. The net turnover during the day was Rs. 176522721.

Source : Equity Bulls

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