Coal India Ltd Result update: Q1FY24
Coal India Ltd, incorporated in 1973, plays a pivotal role in India’s coal mining and production sector. Operating across approximately 82 mining areas in eight states, it contributes an impressive 82% to the nation’s coal production. The company primarily serves the power and steel sectors, with additional consumers from industries such as cement, fertilizers, brick kilns, and more. Recognized as a ‘Maharatna’ company under the Ministry of Coal, Government of India, Coal India Ltd is headquartered in Kolkata, West Bengal.
Coal India Ltd’s product portfolio encompasses coking coal, essential for steel and metallurgical industries; semi-coking coal, utilized in steel production, merchant coke manufacturing, and metallurgical processes; non-coking coal, primarily for power generation and also in sectors like cement, fertilizer, glass, ceramics, paper, and chemicals; and washed and beneficiated coal, essential for hard coke manufacturing, power generation, cement, and sponge iron production.
The company has recently approved 24 coal mining projects with a combined capacity of 140.3 million tonnes per year, representing a sanctioned capital investment of Rs 22,130.22 crore. These projects are expected to significantly contribute to the company’s production capacity in the coming years.
Coal India’s major consumers include the power sector, accounting for 82% of its total output, and the steel sector, alongside various other industries such as cement, fertilizer, brick kilns, and numerous others.
Capital Expenditure in FY22-23:
During the fiscal year 2022-23, the company invested a substantial Rs 18,619.27 crore in capital expenditure, marking a remarkable 20.9% YoY growth. This robust capital investment is anticipated to yield positive results in terms of enhanced production and improved coal transportation in the future.
Coal Production in FY22-23:
In FY 22-23, Coal India achieved an impressive coal production of 703.2 million tonnes, surpassing its target with a 100.5% satisfaction rate. This represents a remarkable 13% growth compared to the previous year, with an increase of 80.6 million tonnes produced in a single year, an unprecedented achievement in the company’s history. Several coal-producing subsidiaries, including BCCL, MCL, NCL, WCL, and CCL, exceeded their production targets for 2022-23.
The year 2022-23 witnessed a significant increase in the volume of coal and overburden handled by Coal India, reaching approximately 2079 million cubic meters. The overall system capacity utilization rose to approximately 85.80%, a substantial increase from the previous year’s approximately 77%.
Q1FY24 Results Updates – Consolidated:
In Q1FY24, Coal India reported a 2.5% YoY revenue growth, totaling Rs 35,983 crore. Operating profit decreased by 14.2% YoY to Rs 10,514 crore, although it showed a notable increase of 52.4% QoQ due to reduced employee and repair costs, down by 29% and 52% QoQ, respectively. Coal offtake volume reached 187 million tonnes, a 5% YoY increase in line with provisional volume numbers. Profit after tax (PAT) declined by 9.8% YoY but saw a significant 44.1% QoQ improvement, totaling Rs 7,971 crore. EBITDA margins rose by 1113 bps QoQ while declining by 570 bps YoY to 29.2%. Earnings per share (EPS) for the quarter stood at Rs 12.9, down by 9.8% YoY.