Amar Ambani, Head of Research, IIFL, said, “Coal India’s operational performance was inline with expectations as the impact of lower realisations was offset by strong volume growth. Operating profit of Rs. 3,008cr was higher by 45.4% yoy and marginally higher than estimate due to lower provisioning for Overburden removal. Coal India is expected to report an increase in its margins led by higher production, reducing man power headcount, increased outsourcing and lower oil prices. Coal India is expected to report strong earnings growth over the next two years on the back of strong volume growth and higher share non‐power sales. Downside from current levels would be supported by strong dividend yield.”
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