Coal India (CIL) 3QFY2016 Results: Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst- Metals & Mining, Angel Broking) on Coal India (CIL) 3QFY2016 Results:

Coal India (CIL) 3QFY2016 Results: EBITDA and Net profit ahead of estimates

"Coal India reported revenue in line with our expectations at INR 18,972cr (vs. our expectation of INR 19,196cr), an increase of 6.8% YoY. Production volumes were ahead of our estimate at 143.9MT for the quarter (vs. our estimate of 140.5). Off-take volumes too were ahead of expectations at 138.1MT (vs. our estimate 135.8MT). Lower than expected material and employee expenses resulted in EBITDA coming in sharply higher than expected at INR 4,192cr, as against our estimate of INR 3,401cr. EBITDA margin improved 250bp YoY at 22.1%, ahead of our estimate of 17.7%. Higher tax expenses and lower other income resulted in net profit being just 8% higher than estimate as against an outperformance of 23% at the EBITDA level. Overall, Coal India has delivered another quarter of strong performance and we maintain our BUY rating on the stock."

Shares of COAL INDIA LTD. was last trading in BSE at Rs.303.5 as compared to the previous close of Rs. 305.05. The total number of shares traded during the day was 357411 in over 5800 trades.

The stock hit an intraday high of Rs. 318 and intraday low of 300.7. The net turnover during the day was Rs. 109079932.

Source : Equity Bulls

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