Coal India Q1 Results Shows 27% YoY Fall In PAT

Amidst challenging financial results, Coal India, one of the nation’s prominent coal producers, continues to forge ahead with soaring production figures and a potential transformation on the horizon. Let’s dive into the numbers, growth prospects, and exciting developments that lie ahead for this industry heavyweight.

Coal India PAT 27% YoY Fall In Quarter 1 Results

Coal India (CIL) is expected to report subdued financial results for the quarter ending June 30, 2023. The company’s consolidated revenue is estimated to be Rs 34,901 crore, down 0.5% YoY, while EBITDA is expected to drop 32% YoY to Rs 8,326 crore, with an EBITDA margin of 23.85% compared to 35% in the same quarter last year. Profit after tax (PAT) is projected to be Rs 6,412 crore, a decline of 27% compared to the year-ago period. The decrease in profit is attributed to an increase in staff expenses. Coal India’s e-auction realisation is estimated at 105%. The management’s outlook on the company’s transformation will be crucial. Additionally, reports suggest that Coal India may undergo rebranding, possibly changing its name to CIL Energy India.

In terms of production, Coal India recorded a 13.4% YoY increase in coal production in July 2023 reaching 53.6 million tonnes (MT) compared to 47.3 MT in July last year. From April to July 2023, CIL’s production reached 229.1 MT a 10.7% increase from 207 MT during the same period in 2022. The company aims to produce 780 MT of coal in FY24 having produced 703 MT in FY23. All subsidiaries of Coal India reported growth with SECL showing a significant 10 MT production increase.

Regarding the share price Coal India’s shares rose by 8% in the June 2023 quarter while the Nifty50 index gained 9.8% during the same period, according to Trendlyne data.

As Coal India sets its sights on increased production and potential rebranding, one question lingers: How will this iconic company’s transformation shape the future of India’s energy landscape?