Coal India Q3 Results Preview PSU likely to post weak numbers; EBITDA seen falling 12% YoY

February 12,2024

Coal India Q3 Results: Coal India, the state-run coal mining company, is set to report its December quarter (Q3 FY24) results on Monday, February 12. The company, according to Zee Business Research, will report a weak set of numbers, given the high base due to last year's e-auction realisation.

The company is expected to post consolidated revenue of Rs 35,226 crore, up 0.16 per cent year-on-year (YoY), while EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is likely to fall 12 per cent YoY to Rs 9,187 crore. Margins are also expected to decline to 26 per cent against 30 per cent logged in the year-ago period. Profit after tax (PAT), or net profit, is estimated to fall 13 per cent YoY to Rs 6,720 crore.

The premium for e-auctions is expected to be around 70 per cent. Key monitorables include the dividend announcement.

Coal India Q2 Results 

The PSU reported better-than-expected numbers in the second quarter of the ongoing fiscal, helped by high power demand.

The state-run miner posted a consolidated net profit of Rs 6,800 crore ($816.3 million) for the quarter ended September 30, up 12.5 per cent from last year.

Power demand in India, which usually peaks in May due to extreme summer heat, remained high in the reporting quarter due to unusually dry weather and higher economic activity, amid a drop in hydroelectric output.

The country's power demand hit a high of 241 gigwatts (GW) in the second quarter, surpassing the Central Electricity Authority's target of 230 GW for fiscal 2024 as hydropower generation fell 11 per cent due to reduced rainfall caused by El Nino, Elara Capital said in a note.