Coal India's PAT soars to all time high

Scripting an all-time record high, Coal India Limited (CIL) mopped up a massive consolidated profit after tax (PAT) of Rs. 22,597 Crores, in the nine months till December FY'23. The sheer scale of profit eclipsed the highest PAT that the company previously achieved for an entire financial year, which was Rs.17,464 Crores in 2018-19.

CIL's PAT during April-December FY'23 zoomed up by a strong y-o-y growth of 112% against Rs. 10,663 Crores for the comparable period of FY'22.

CIL scaled up its profit to higher orbit despite capping coal prices for the past five years amidst rising input costs especially diesel and explosives.

The company's board gave its nod for the payment of second interim dividend of Rs. 5.25 per share. Earlier 1st interim dividend of Rs.15 was already declared.

CIL's post tax profit during Q3 of the ongoing fiscal rose sharply to Rs. 7,719 Crores clocking a robust 69% growth. This is also a historic high for this period in any year till now. For the comparable quarter of FY'22 CIL's PAT was Rs.4,557 Crores.

The steep rise in profit came on the back of higher add-on over the notified price in eauction sale of 14.65 million tonnes (MTs) coal during Q3 FY'23.

Though auction volumes were lower by 44% in current fiscal's Q3, compared to 26 MTs of similar quarter FY'22, higher premiums under the e-window helped CIL in cranking up sales by Rs. 2,341 Crores. The realization per tonne of coal of was Rs. 5,046 under auction segment, in Q3 against Rs. 1,947 per tonne for comparable quarter in FY'22. The jump was Rs. 3,099 per tonne or 159%.

Volume sale of 158 MTs and better average realization under FSA resulted in a net impact of around Rs.3,580 Crore. FSA sale increased by 13.2 MTs in the Q3 FY'23 compared to 144.6 MTs of previous fiscal's Q3. Realization per tonne of coal under FSA category was Rs. 1,482 in Q3 FY'23 an increase of 8.2% compared to Rs. 1,370 per tonne of Q3 FY'22.

The company's net sales was up 25% y-o-y to Rs. 32,429 Crores compared to Rs. 25,991 Crores of third quarter of previous FY. Earnings before interest, tax, depreciation, amelioration (EBITDA) - the measure of a company's financial performance - has risen by 91% for the nine month period to Rs.31,998 Crores from Rs.16,769 Crores of same period in FY'22.

Till nine months ending December FY'23 CIL output logged16% growth at 479 MTs while supplies to coal fired plants expanded by 18.8 MTs to 432.7 MTs.

Shares of Coal India Limited was last trading in BSE at Rs. 224.90 as compared to the previous close of Rs. 225.90. The total number of shares traded during the day was 486891 in over 7396 trades.

The stock hit an intraday high of Rs. 228.30 and intraday low of 223.95. The net turnover during the day was Rs. 109915604.00.

Source : Equity Bulls

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CoalIndia INE522F01014 Q3FY23 9MFY23 ResultUpdate