The country's largest coal mining company Coal India 's consolidated net profit grew better-than-expected 7.9% year-on-year to Rs 4,469.3 crore in the quarter ended June 2012 supported by higher other income. Analysts on an average had expected it in the vicinity of Rs 4,372 crore.
Consolidated net sales rose by 13.8% to Rs 16,500.6 crore from Rs 14,499 crore during the same period, which was in-line with analysts' expectations of Rs 16,762.4 crore.
Topline growth was aided by higher realizations owing to coal price hikes, and higher sales volumes, which was driven by higher rake availability and inventory liquidation.
Other income, which contributes nearly 50% to total net profit, increased more than 32% to Rs 2,071.37 crore in the first quarter of FY13 from Rs 1,566.63 crore in a year ago period. Higher yields on its huge cash & cash equivalent balance of more than Rs 50,000 crore supported profits.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined 400 basis points to 29.2% due to higher employee cost. Employee cost rose by 25.8% to Rs 6,130 crore from Rs 4,872 crore YoY, which was in-line with forecast of Rs 6200-Rs 6500 crore in the quarter.
Power and fuel cose was up by 11.1% YoY to Rs 513.8 crore and raw material cost went up by 8.9% to Rs 1,233.4 crore.
EBITDA was flat at Rs 4,814.6 crore as against Rs 4,816.2 crore during the same quarters.
Blended realisations were up by 7% to Rs 1,459 per tonne from Rs 1,364.6 per tonne YoY.
The offtake of raw coal during the quarter increased 6.4% YoY to 113.04 million tonne (MT) from 106.25 MT on the back of higher output and increase in availability of rakes. The production of raw coal went up by 6.4% YoY to 102.47 MT.
At the start of the first quarter of FY13, Coal India had an inventory of approximately 70 million tonnes.
Derived stock liquidation jumped 5.9% to 10.54 million tonnes as against 9.95 million tonnes. Inventory liquidation is always higher in first half of financial year.
CIL board finally clears FSAs with revision in penalty clause
Coal India Ltd has decided to revise the contentious penalty clause in the fuel supply agreements (FSAs) to be signed with power firms. The state-run company also agreed to supply at least 80 per cent of the required fuel to power firms. It would meet the production gap through imports, amounting to 15 per cent this year.
“We are revising the FSAs drafted in mid-April; the trigger remains same, at 80 per cent. There are changes in the penalty side. We have proposed some changes and we will meet again soon to finalise these,” Chairman S Narsing Rao said after the company’s board meeting. He, however, refused to share the details of CIL’s proposals on the penalty clause.
Prices of imported and domestic coal would be pooled to supply coal at an average price to power generation utilities.
“We have agreed to import. Import is practicable when there’s pooling. The percentage of import varies from year to year. This year, it would be 18-20 million tonnes. Of our supplies, 65 per cent would be domestic coal and 15 per cent would be imported. There is a broad agreement on pooling, but the nitty-gritties need to be finalised,” Rao said.
The penalty clause, as well as the details of the price pooling would be finalised in the next board meeting, likely within the next 15 days.
According to a Presidential directive to CIL, it has to sign FSAs with power plants commissioned between April 2009 and December 2011.
A committee of secretaries, under the principal secretary of the Prime Minister’s Office (PMO), also wants CIL to sign FSAs for all power projects scheduled to come up by March 2015. So far, CIL has signed 15 FSAs with companies such as Reliance Power, Lanco, etc.
However, the FSA with NTPC, the country’s largest power producer, has been stuck, owing to the power public sector undertaking opposing provisions in the draft.
Under the terms of the draft FSAs, CIL has to ensure at least 80 per cent of coal supply to power producers or pay a penalty of 0.01 per cent. Power producers had opposed the low penalty and the provisions that granted a three-year exemption from paying penalties. Citing production constraints, CIL said it was not comfortable with the 80 per cent trigger. It had sought a 65 per cent threshold.
Consolidated net sales rose by 13.8% to Rs 16,500.6 crore from Rs 14,499 crore during the same period, which was in-line with analysts' expectations of Rs 16,762.4 crore.
Topline growth was aided by higher realizations owing to coal price hikes, and higher sales volumes, which was driven by higher rake availability and inventory liquidation.
Other income, which contributes nearly 50% to total net profit, increased more than 32% to Rs 2,071.37 crore in the first quarter of FY13 from Rs 1,566.63 crore in a year ago period. Higher yields on its huge cash & cash equivalent balance of more than Rs 50,000 crore supported profits.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined 400 basis points to 29.2% due to higher employee cost. Employee cost rose by 25.8% to Rs 6,130 crore from Rs 4,872 crore YoY, which was in-line with forecast of Rs 6200-Rs 6500 crore in the quarter.
Power and fuel cose was up by 11.1% YoY to Rs 513.8 crore and raw material cost went up by 8.9% to Rs 1,233.4 crore.
EBITDA was flat at Rs 4,814.6 crore as against Rs 4,816.2 crore during the same quarters.
Blended realisations were up by 7% to Rs 1,459 per tonne from Rs 1,364.6 per tonne YoY.
The offtake of raw coal during the quarter increased 6.4% YoY to 113.04 million tonne (MT) from 106.25 MT on the back of higher output and increase in availability of rakes. The production of raw coal went up by 6.4% YoY to 102.47 MT.
At the start of the first quarter of FY13, Coal India had an inventory of approximately 70 million tonnes.
Derived stock liquidation jumped 5.9% to 10.54 million tonnes as against 9.95 million tonnes. Inventory liquidation is always higher in first half of financial year.
CIL board finally clears FSAs with revision in penalty clause
Coal India Ltd has decided to revise the contentious penalty clause in the fuel supply agreements (FSAs) to be signed with power firms. The state-run company also agreed to supply at least 80 per cent of the required fuel to power firms. It would meet the production gap through imports, amounting to 15 per cent this year.
“We are revising the FSAs drafted in mid-April; the trigger remains same, at 80 per cent. There are changes in the penalty side. We have proposed some changes and we will meet again soon to finalise these,” Chairman S Narsing Rao said after the company’s board meeting. He, however, refused to share the details of CIL’s proposals on the penalty clause.
Prices of imported and domestic coal would be pooled to supply coal at an average price to power generation utilities.
“We have agreed to import. Import is practicable when there’s pooling. The percentage of import varies from year to year. This year, it would be 18-20 million tonnes. Of our supplies, 65 per cent would be domestic coal and 15 per cent would be imported. There is a broad agreement on pooling, but the nitty-gritties need to be finalised,” Rao said.
The penalty clause, as well as the details of the price pooling would be finalised in the next board meeting, likely within the next 15 days.
According to a Presidential directive to CIL, it has to sign FSAs with power plants commissioned between April 2009 and December 2011.
A committee of secretaries, under the principal secretary of the Prime Minister’s Office (PMO), also wants CIL to sign FSAs for all power projects scheduled to come up by March 2015. So far, CIL has signed 15 FSAs with companies such as Reliance Power, Lanco, etc.
However, the FSA with NTPC, the country’s largest power producer, has been stuck, owing to the power public sector undertaking opposing provisions in the draft.
Under the terms of the draft FSAs, CIL has to ensure at least 80 per cent of coal supply to power producers or pay a penalty of 0.01 per cent. Power producers had opposed the low penalty and the provisions that granted a three-year exemption from paying penalties. Citing production constraints, CIL said it was not comfortable with the 80 per cent trigger. It had sought a 65 per cent threshold.
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