- Coal India’s net income for the first quarter was 87.4 billion rupees, a 20% decrease year-over-year, but still above the estimated 83.22 billion rupees.
- Revenue came in at 358.4 billion rupees, down 4.4% from the previous year, surpassing the estimate of 350.12 billion rupees.
- Other operating income amounted to 39.6 billion rupees, an 8.5% decrease year-over-year, exceeding the forecasted 32.96 billion rupees.
- Other income totaled 16.2 billion rupees, reflecting a 14% drop compared to last year.
- Total costs rose by 2.2% year-over-year, reaching 258.9 billion rupees.
- Employee benefits expenses stood at 113.2 billion rupees, slightly below the estimated 114.04 billion rupees, and down 1.1% year-over-year.
- Contractual expenses were 78.1 billion rupees, a marginal increase of 0.6% year-over-year, and below the projected 85.4 billion rupees.
- Finance costs increased by 27% compared to last year, totaling 2.65 billion rupees, slightly above the estimate of 2.46 billion rupees.
- Other expenses rose by 6.8% year-over-year to 28.68 billion rupees.
- The dividend per share was 5.50 rupees.
- The company has attracted analyst recommendations of 17 buys, 4 holds, and 4 sells.
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Coal India Ltd on Smartkarma
Analysts on Smartkarma like Rahul Jain have been closely evaluating Coal India Ltd‘s performance. In a recent report titled “India Coal Sector Q1 FY26: Private Miners Surge, CIL Stumbles,” Jain highlighted CIL’s challenges such as an 8.5% drop in June output due to various issues like monsoon impacts and underperforming subsidiaries. The outlook for CIL remains cautious unless there are improvements in execution moving forward.
In another analysis by the same analyst, “Coal India: Volume Strength Intact, Profitability Headwinds Emerging,” Jain discussed how Coal India reported flat EBITDA in FY25 due to lower e-auction prices and NSR pressures. While valuations may seem cheap, margin risks from future wage hikes and limited operating leverage are factors to consider. Jain also identified the company as a potential value trap due to slowing production growth and other market dynamics.
A look at Coal India Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Coal India Ltd, a prominent coal producer and marketer, seems to have a promising long-term outlook based on its Smartkarma Smart Scores. The company has received impressive scores in areas crucial for sustained growth. With a high score for dividends and resilience, investors can expect steady returns and stability from their investments in Coal India Ltd. Additionally, the company’s solid value and growth scores indicate a strong foundation and potential for expansion in the future. However, it is worth noting that the momentum score for Coal India Ltd is relatively lower, suggesting a slower rate of recent market performance.
Overall, Coal India Ltd‘s strong performance in dividend yield, resilience, and fundamental value bodes well for its future prospects. As a leading player in the coal industry, the company’s focus on providing coal products and related services positions it favorably for sustained growth and stability in the market. While there may be room for improvement in terms of momentum, the company’s high scores in key areas indicate a solid foundation for long-term success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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