Scripscan:Coal India Ltd
Code:533278
cmp:350
Story:PSU Coal India posted a good set of numbers for Q1FY12. Despite just a 27% rise in net sale, and a 15% rise in total operating expenses, the company ended the quarter with a 64% rise in net profit at Rs.4144 crore. Also its coal production during the quarter was at 96.3 mt, which was slightly lower than the company’s target of 98.66 mt. OPM was at 41.07% up by 841 bps on a YoY. What really helped was higher realisations. This could also be attributed to the fact that it sold 11.39 mt of coal through electronic auctions, 2.09 mt more than during Q1FY11.The company has set itself a sales target for this fiscal year at 454 mt, which is 8.5% higher than FY11. One of the biggest costs for the company is on employees. In Q1FY12, its spent 8% higher at Rs.4872 crore. And in Q2FY12, this cost is expected to go up further as the company is negotiating wage revisions. The company plans to provide for the potential increase in wage costs from Q2 and hence profit growth in the quarter till September is expected to be lower. Coal India has cleared a proposal to spend up to Rs.4,200 crore to build 21-22 washeries, over and above the 20 already in the pipeline at a cost of Rs.2,800 crore. This is to be fully commissioned in eight years after which it will wash almost 50% of its coal, which in turn will fetch it a higher price.Hold this scrip for the next decade to reap real rich monetary benefit.
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
