Coal India trades higher ahead of Q1 results; here’s what to expect

INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of Coal India were trading marginally in the green in early trade on Tuesday ahead of its financial results for the
quarter ended June 30
Brokerage firm Prabhudas Lilladher believes that the coal major may post 20.50 per cent year-on-year (YoY) rise in adjusted net profit on
2.50 per cent and 19.50 per cent increase in sales and EBITDA, respectively, in June quarter
However, it sees 24.30 per cent and 13.60 per cent fall in adjusted net profit and sales on QoQ basis
“Coal dispatches are expected to fall 6.2 per cent QoQ to 153.4 million tonnes on the back of higher base
Realisations are expected to fall 8.3 per cent or Rs 135 per tonne on QoQ basis
Due to lower volume and weak realisations, EBITDA per tonne is expected to decline 12.2 per cent QoQ to Rs 441,” it said in a
report. Kotak Institutional Equities projected 15.20 per cent YoY rise in net profit for Coal India in Q1FY20
On the other hand, it sees 27.70 per cent QoQ dip in net profit. “Absence of volume growth with dispatches of 153 million tonne in Q1FY20
will likely lead to subdued earnings performance,” Kotak said. The scrip was up 0.30 per cent at Rs 208.25 at around 9.55 am (IST), while
the benchmark BSE Sensex was down 223 points, or 0.60 per cent, at 37,358 at around the same time