Coal India shares are drawing attention after declining over 2% after the company reported a 22% decline in profit, dropping to ₹6,274.8 crore from ₹8,048.6 crore. The company also saw a 6.4% dip in revenue, which fell to ₹30,673 crore in the recent quarter. Additionally, EBITDA dropped by 14.2% to ₹8,617.1 crore, with a 250 basis points margin contraction to 28.1%.
As of 9:24 am the shares were trading 2.09% lower at ₹451.45
Despite these challenges, Coal India has announced an interim dividend of ₹15.75 per share for FY25, reflecting the company’s confidence in its cash flow and commitment to returning value to shareholders.
Key Highlights:
- Weak Q2 Results: Coal India’s second-quarter performance fell short of expectations, leading to a more cautious outlook from analysts.
- Support from Rising Power Consumption: Jefferies notes that increasing power demand is likely to drive volume growth for Coal India, offering some optimism for the future.
- Stabilizing E-Auction Prices: A sharp decline in e-auction prices appears to have stabilized, which could help the company maintain its revenue levels.
- EPS Estimate Cut: Jefferies has trimmed its EPS estimates for FY25-27 by 2-3%, though it maintains a positive outlook based on the company’s attractive valuation.
Coal India’s mixed results reflect current industry challenges, but the company’s interim dividend signals confidence in its future cash flow and continued support for shareholders.
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