Views on Coal India 2QFY2016 Results: Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst - Metal & Mining, Angel Broking) on Coal India 2QFY2016 Results:

Coal India (CIL) 2QFY2016 Results: In-line with expectations

"Coal India reported revenue and EBITDA in line with our expectations. Total revenue increased 8.2% YoY to INR 16,958cr, in line with our estimate of INR 16,833cr. While production was slightly below our estimate at 108.2MT for the quarter (vs. our estimate of 110.6), oft-take volumes were marginally ahead of expectations at 121.8MT (Our estimate 119.1MT). Off-take was higher in the FSA segment with e-auction and washeries volumes in line with expectations. FSA realizations were in line with expectations at INR 1,294/T. However, e-auction realizations came in much lower than expected at INR 1,788. This was partially offset by better than expected washeries realizations of INR 2,328. Lower than expected material and overburden expenses were offset by a marginal increase in staff and other expenses resulting in an EBITDA of INR 3,008cr, as against our estimate of INR 3,106cr. Net profit at INR 2,544cr was slightly ahead of expectations (our estimate INR 2,445) led by lower than expected tax expenses and marginally higher than expected other income. While the slow growth in production remains a concern, off-take is increasing at a healthy pace. We have a BUY rating on the stock with a price target of INR 400."

Shares of COAL INDIA LTD. was last trading in BSE at Rs.331.1 as compared to the previous close of Rs. 337.65. The total number of shares traded during the day was 261573 in over 4207 trades.

The stock hit an intraday high of Rs. 336.55 and intraday low of 326.95. The net turnover during the day was Rs. 86859798.

Source : Equity Bulls

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