Blended realisation may increase 3-4 percent YoY on higher international coal prices, higher contribution from e-auction sales of total sales, hike in coking coal prices in Q4FY17.
Coal India’s fourth quarter profit is seen falling 7 percent year-on-year to Rs 3,949.8 crore due to lower interest income but revenue may increase 7.1 percent to Rs 22,229 crore, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit during the quarter is likely to jump 8.7 percent to Rs 5,315 crore and margin may expand 30 basis points to 23.9 percent compared with year-ago period.
Topline boost owing to sales volumes
-Dispatches of the country’s largest coal company increased 5.6 percent at 151 million tonnes versus 143 million tonnes YoY
-E-auction sales volumes may increase 40 percent to 28 MT versus 20 MT YoY and 25 MT QoQ
-Fuel supply agreement (FSA) volumes are estimated to decline on weak demand by power sector
-Blended realisation may increase 3-4 percent YoY on higher international coal prices, higher contribution from e-auction sales of total sales, hike in coking coal prices in Q4FY17.
-Poor demand and oversupply of coal are likely to keep realisation in check as well
-Analysts expect e-Auction premia to FSA realisations to recover to 30 percent versus 21 percent QoQ
Margin stability is expected due to
-Higher blended realisations and volumes but offset by provisioning for the wage hike and increase in employee cost
Key issues to watch out for
-E-auction volumes and realisation-Global coal prices