Tag: Coal India

Why this metals analyst has a ‘hold’ rating on Vedanta

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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PhillipCapital has a ‘hold’ rating on mining major Vedanta. Vikash Singh, VP-Metals and Mining at brokerage firm expects further gains from the stock given the ongoing base metals rally.

“We are still telling clients to hold on to this, not a great time to sell. There are some further gains which we can get. Base metals are in rally, and Vedanta is a pure play. So some more gains are yet to be derived from this stuff. So we are telling people to hold on.”

The Anil Agarwal-led mining conglomerate Vedanta. on May 13, will convene a board meeting on May 16 to consider the first interim dividend for April-March 2024-25 and deliberate on various fund raising strategies.

Vedanta would likely distribute the dividend it received from Hindustan Zinc. This indicates a revival of the dividend distribution, which paused last year. It is anticipated that this year, the dividend could amount to approximately ₹30 in total, Singh said.

He believes they might be considering a semiconductor or display making unit in India and the fresh funds could be for that.

Rahul Jain, an independent metal analyst, pointed out that Vedanta has been leading the charge in capacity expansion at a low cost. Despite facing significant balance sheet challenges, these issues are expected to gradually resolve, particularly if current commodity prices persist for six months to a year.

This could result in substantial earnings upgrades, fueled by factors such as reevaluation based on current commodity prices, currency depreciation, and increased integration of raw materials like new Bauxite and coal mines.

Singh is also optimistic about other public sector metals stocks. He is positive on Coal India.

NMDC, he says is entering a favourable phase structurally, with expectations of nearly 14 million tonne of additional steel capacity by fiscal year 2026, which would necessitate significant iron ore supply.

However, he refrained from commenting on Hindustan Copper due to a lack of coverage.

Nalco, he believes could benefit given that that alumina prices are rising, and there might be an aluminium deficit next year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India shares rise 5%, may hit ₹550 — what’s next for this PSU stock?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of state-run Coal India Ltd., are trading with gains of up to 5% on Friday (May 3), making an intraday high of ₹472.80 apiece on the NSE, even as the company’s March quarter (Q4FY24) earnings missed Street estimates.

Despite the disappointing Q4 numbers, analysts at several brokerage firms have maintained a ‘Buy’ recommendation on the counter. However, CIL’s target prices were slashed on concerns around declining premiums.

Nuvama in its latest note said that coal remains the dominant fuel in the foreseeable future as the world is not yet ready to switch to renewable energy.

Besides, amid disruption in supply of natural gas from Russia; demand has shifted to coal, as an alternative, the brokerage stated.

Nuvama expects Coal India to post a 5% volume CAGR (compound annual growth rate) on improving power demand during FY24–26 estimates to 831 MT. The brokerage has cut its FY25 EBITDA estimates by 2%, factoring in higher employee cost.

“CIL is on its way to increasing its production and evacuation facilities to 1 billion tonnes by FY28. On account of sustained high coal demand, E-auction prices are likely to normalise in FY25,” Nuvama said with a ‘Buy’ rating on the stock. However, it has trimmed its target price to ₹537 per share from ₹561 earlier.

With the premiums sustaining at 65% levels, domestic brokerage house Emkay Global expects concerns around declining premiums alleviating to some extent, and see potential for upgrades to consensus earnings.

“We maintain our estimates for now, as we sense that the market would seek more clarity on accounting treatment from the management,” the brokerage said while suggesting a ‘Buy’ rating and target price of ₹550 per share.

Global brokerage firm Jefferies also has a ‘Buy’ recommendation on the Coal India stock with a target price of ₹520 per share. The brokerage said that a rise in EBITDA and profit after tax includes effect of accounting policy changes for stripping activity costs.

Shares of Coal India are trading 2.41% higher at ₹464.85 at around 12 pm today. The stock has almost doubled over the last 12 months and has gained 20% on a year-to-date basis.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India Q4 net profit rises 26% — PSU declares dividend of ₹5 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Coal India Ltd (CIL) on Thursday (May 2) reported a 25.8% year-on-year (YoY) increase in net profit at ₹8,640.5 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Coal India posted a net profit of ₹6,869.5 crore, the company said in a regulatory filing. The company’s revenue from operations dipped 1.9% to ₹37,410.4 crore against ₹38,152.3 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA rose 21.5% to ₹11,337.6 crore in the fourth quarter of this fiscal over ₹9,333.3 crore in the corresponding period of the previous fiscal.

The EBITDA margin stood at 30.3% in the reporting quarter against 24.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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The company’s consolidated net profit stood at ₹6,875.07 crore in the year-ago period. Its consolidated income in the January-March period declined to ₹39,654.50 crore from ₹40,371.51 crore a year ago. The maharatna firm said it posted 25.8% growth in profit after tax (PAT) on a consolidated basis to ₹8,640 crore in the fourth quarter of FY24.

The board of directors, in its meeting, had recommended payment of the final dividend for the financial year 2023-24 at ₹5 per share of the face value of ₹10 and is subject to the approval of the members at the ensuing annual general meeting of the company.

This was in addition to the interim dividend of ₹20.50 per share CIL had already paid earlier in the fiscal. Thus, the total dividend for the fiscal climbs to ₹25.50 per share, which is 255% of the face value of a single share.

During 2023-24, the state-owned mining behemoth contributed ₹60,140 crore to the government exchequer, both central and states where it operates. The company’s coal supplies increased to 201.6 MT in the fourth quarter of FY24, up 8% compared to 186.9 MTs in the corresponding quarter in FY23. This gave the heft to the company’s profitability.

Also Read: South Indian Bank Q4 net profit dips 14% to ₹287 crore, NII rises to ₹875 crore

CIL produced 241.75 million tonnes (MT) of coal in the fourth quarter of 2023-24, registering a growth of 7.8% over 224.16 MT produced during the same quarter in the previous fiscal. CIL accounts for over 80% of the country’s domestic coal production.

The results came after the close of the market hours. Shares of Coal India Ltd ended at ₹453.25, down by ₹1.05, or 0.23%, on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India production rises 7% in April

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Coal India Ltd (CIL) on Wednesday said its production increased 7.3% to 61.8 million tonnes (MT) in April.

The company had produced 57.6 MT of coal in the corresponding month of the previous fiscal, CIL said in a filing to the BSE.

CIL accounts for over 80% of domestic coal production.

The company’s coal offtake also registered a rise of 3.2% to 64.3 MT last month, over 62.3 MT in the year-ago period.

Coal offtake is the amount of dry fuel supplied from the pitheads.

Of the 61.8 MT of coal produced by CIL last month, a maximum of 16 MT was produced by Mahanadi Coalfields Ltd (MCL) followed by 14.1 MT by South Eastern Coalfields (SECL) and 11.8 MT by Northern Coalfields Ltd among others.

CIL’s production increased 10% to 773.6 MT in FY24 but fell short of its production target of 780 MT for the fiscal.

CIL’s production was 703.2 MT in 2022-23.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal Ministry intends to increase output to meet rising power demand: Exclusive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s Coal Ministry intends to get 20 new mines operational by the end of this year, sources privy to the matter told CNBC-TV18.

The ministry wants to expand its Coal output by 100 MT via these 20 mines. 10 out of these 20 mines were allocated to Coal India.

Sources said that this move is to ensure coal is available to meet the country’s rising power demand and reduce imports.

As of February 2024, India’s thermal capacity is now at 260 GW. Analysts expect the country’s thermal capacity to cross 300 GW this year.

India’s peak power demand this summer is estimated at 384 GW.

Coal India is yet to respond to CNBC-TV18’s queries.

Coal India, India’s largest mining company, completed financial year 2024 with a production figure of 774 MT, falling marginally short of the company’s guidance of 780 MT. The company has set a target of 838 MT of Coal production for financial year 2025.

Shares of Coal India are trading 1.6% lower at ₹440.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India falls marginally short of FY24 production target; Offtake rises 8.5%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Coal India Ltd. fell marginally short of its production target for financial year 2024, it said in an exchange filing.

Overall production for the full financial year 2024 grew 10% from last year to 773.6 MT. Coal India had set a production target of 780 MT tonnes for the financial year.

In February this year, Coal India Chairman PM Prasad had warned that the company may fall short of its production target by 10 MT.

However, what had spooked the street was the drastic drop in e-auction premiums.

For the month of March, the company’s production grew by 6.1% to 88.6 MT. Eastern Coalfields reported a 52% growth in production in March, while Central and Northern Coalfields saw production grow by 11.9% and 11.6% each.

Offtake for the month of March also increased to 68.8 MT, a growth of 7.2% year-on-year. On a year-on-year basis, Coal India’s offtake grew by 8.5% from last year to 753.5 MT.

Eastern Coalfields saw the highest increase in offtake as well, rising 39% from last year.

Brokerage firm Nuvama was working with a financial year 2024 production estimate of 764 MT, which was already below the company’s earlier guidance.

Shares of Coal India are trading 1.9% higher at ₹442.20. The stock has doubled in the last 12 months.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India achieves 610.8-MT supply to power sector, tops annual target

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Coal India Ltd (CIL) has surpassed its annual supply target of 610 million tonnes to the thermal power sector, achieving 610.8 MT by March 27, a company official said. This marks the highest coal supply to date to the power sector, he said.

CIL’s coal supply to the sector rose by 29.3 million tonnes in absolute volume terms compared to the corresponding period last fiscal, he said. The miner’s current average daily supply to coal-fired plants stands at 1.76 million tonne, reflecting the growing demand from the power sector, according to a company statement.

CIL is aiming to boost production in the wake of the estimated peak demand for electricity of 250 GW this summer. In 2022-23, offtake to power plants reached 586.6 million tonnes, surpassing the commitment of 565 million tonnes, the official said.

As per data, coal stock at domestic coal-based power plants stood at 47.1 million tonnes as of March 26, an increase of 13.7 million tonnes as against the corresponding period last year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Higher domestic coal production leads to fall in import in first 10 months of FY24, compared to previous year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Higher domestic coal production has led to a reduction of 36.69% in the volume of coal imported for blending by thermal power plants, amounting to 19.36 million tons (MT) from April 2023 to January 2024, compared to the same period of the previous year.

A reduction has also been noted in the share of coal import in proportion to India’s total coal consumption. The share of coal import declined to 21% during April 2023 to January 2024, compared to 22.48% during the corresponding period of the previous year.

Conversely, there has been a notable increase of 94.21% in coal imports by imported coal-based power plants during April 2023 to January 2024, compared to the same period in the previous year. Explaining the reason behind this contrast, the Coal Ministry pointed that many of these power plants are designed in a manner that they can only use imported coal, while it attributed the growth in such imports to a substantial decline in prices of imported coal during this period.

India primarily imports thermal coal from South Africa and Indonesia, and average prices from these countries decreased by approximately 54% and 38% respectively during April 2023 to January 2024, compared to the corresponding period in the previous year.

Also, there has been a substantial reduction in the auction premium received by Coal India Limited (CIL) over the notified price of coal, which decreased from 278% between April 2022 to January 2023 to 82% during the same period in this fiscal. The Coal Ministry attributed the reduction in auction premium to the ample availability of coal, with stocks of 96 MT currently available with coal companies.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India needs a 95 MT production figure in March to meet FY24 target

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-run Coal India Ltd. produced 74.8 MT of coal in the month of February, registering a growth of 8.7% compared to the same period last year.

In an exchange filing, the company said that its production for the first 11 months of the year grew by 10.5% to 685.1 MT. This is 87% of the company’s full-year target of 780 MT. The company will now have to produce 95 MT coal in the month of March to meet its full year target.

However, in an analyst call earlier this month, the company’s Chairman PM Prasad had mentioned that the company is likely to fall short of its full-year production target of 780 MT by 10 MT. Even with a revised estimate of 770 MT, Coal India’s production will have to grow by 85 MT to meet the target.

However, brokerage firm Nuvama has been working with a financial year 2024 production estimate of 764 MT, which is already below the company’s earlier guidance.

For February, Eastern Coal Fields saw production grow by 62% from last year. Barring Northern Coalfields, where production declined, rest of the company’s subsidiaries saw growth in production ranging from 2% to 20%.

Offtake for the month of February grew by 12% to 65.3 MT. For the full year, offtake has increased by 8.6 MT to 684.7 MT.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India enters into JV with BHEL to undertake coal-to-chemicals business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Coal India Ltd (CIL) on Wednesday said it has signed a joint venture agreement with BHEL to undertake the coal to chemicals business.

The joint venture (JV) will begin by setting up a 2000 TPD (tonne per day) ammonium nitrate plant using BHEL’s PFBG (Pressurized Fluidized Bed Gasification) technology.

“To form a Joint Venture Company to undertake Coal to Chemicals business by initially setting up a Coal to 2000 TPD Ammonium Nitrate Plant using BHEL’s in-house developed PFBG (Pressurized Fluidized Bed Gasification) technology,” the company said in an exchange filing.

The purpose of this venture is to leverage BHEL’s in-house developed technology for gasification of coal, which is a key process for the conversion of coal into various value-added products, including chemicals.

Under the agreement, the ownership of the joint venture company will be 51% with Coal India and 49% with BHEL. The initial paid-up share capital of the company will be ₹1 lakh, and the registered office will be located in the state of Odisha, India.

The Board of Directors of the joint venture company will consist of six members, three nominated by BHEL and three by Coal India.

One of the key terms of the agreement is that BHEL and the joint venture company will collaborate on a “coal to syngas island/gasification plant” project on a Lump Sum Turn Key (LSTK) basis, using BHEL’s PFBG technology. This project will be executed after the finalisation of a Detailed Feasibility Report (DFR).

“CIL to ensure offtake of at least 75% of rated annual production capacity of the Project, envisaged in the Pre-Feasibility Report (PFR), subject to acceptance of quality and prices on mutually acceptable terms, as agreed after finalization of DFR,” the company added.

Shares of Coal India Ltd ended at ₹434.30, down by ₹7.00, or 1.59% and Bharat Heavy Electricals Ltd’s shares ended at ₹224.65, up by ₹1.70, or 0.76% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow