Stocks of Coal India Limited closed at Rs 233, 2 percent down as compared to the previous closing price of Rs 237.40.
Yesterday, the company announced its Q4 results along with the results for FY22-23, details of the same have been shared later in the piece. The company’s Board also recommended a final dividend of Rs 4 (40 percent of its face value of Rs 10) for the financial year ending March 2023. Payment of the same is subject to the shareholder’s approval.
Coal India Limited, one of the largest coal producers in the world, is responsible for the vast majority of coal production done in India. It operates across various mining areas which are spread over numerous provincial states along with one mine planning and consultancy company. The company has hundreds of mines, the majority of which are underground, which are closely trailed by open-pit, and also operates multiple coking coal washeries.
Having a look at the financials reported, the company, on a quarterly basis, has been able to improve its operating revenues from Rs 35,169 crores in Q3 v/s Rs 38,152 crores in Q4. On a contrasting note, the PAT figures have shown a down movement from Rs 7,719 crores to Rs 5,528 crores representing a 28 percent reduction.
On a yearly basis, both the above-mentioned metrics have shown some positive gestures with an increase in numbers. Operating revenues went up from Rs 1,09,715 crores during FY21-22 to Rs 1,38,252 crores in FY22-23. Moreover, PAT figures took a shift from Rs 17,378 crores to Rs 28,125 crores during the same period.
The operational efficiencies have been reflected in the profitability ratios with the return on equity (ROE) moving from 36.99 percent during FY20-21 to 43.63 percent in FY21-22. In congruence with the pattern shown above, the return on capital employed (ROCE) moved from 46.06 percent to 54.38 percent keeping the timeframe the same.
The debt-to-equity ratio of the company has also been favorable with a reduction from 0.16 in FY20-21 to 0.08 in FY21-22.
The latest shareholding data shows that the promoters hold a 66.13 percent stake in the company, and Foreign Institutional Investors (FIIs) hold a 7.84 percent stake in the company.
Written by Amit Madnani
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