Coal India Q2 results on October 25: Key factors to watch out for

In a filing to the stock exchanges earlier this month, Coal India said that its Board of Directors will meet on October 25, to evaluate and approve unaudited standalone and consolidated financial statements for the quarter ending September 30, 2024.

According to experts, earnings for the second quarter are likely to bear the brunt of a fall in the company’s production in the past two months of August and September, compared to the year-ago levels, due to monsoons.

Falling output

In its operational updates earlier this month, Coal India informed the bourses that production for September fell 1% to 50.9 million tonnes compared to 51.4 million tonnes in the corresponding month a year ago.

In August, the decline in output was a much steeper 11.9% to 46.1 million tonnes compared to 52.3 million tonnes in the same month of the previous year.

In July, however, production had risen 2.5% to 55.04 million tonnes compared with 53.67 million tonnes in July 2023.

Experts believe that Coal India’s volumes in the current financial year are likely to fall well short of the management's targets.

So far this year, Coal India has achieved 40% of the full-year target of 838 million tonnes that it has set for itself.

Dividend likely to be announced

Along with quarterly results, Coal India may also declare an interim dividend, if any, for the financial year 2024-25.

The company has already fixed November 5, 2024, as the record date for the purpose of payment of the dividend.

Coal India Q1FY25 performance

Coal India had reported a 4.24% year-on-year rise in its consolidated net profit for the June 2024 quarter at ₹10,943.55 crore compared to ₹10,498.39 crore in the year-ago period.

Revenue from operations had risen marginally by 1.3% to ₹36,464 crore during Q1FY25 compared to ₹35,983.21 crore in the same quarter of the preceding fiscal.

During this time, the production of raw coal was up by 8% to 189.3 million tonnes (MT) in Q1FY25.

Also, the company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) jumped 5.6% to ₹14,339 crore during the June quarter, while margins stood at 39.3% compared with 37.7% a year ago.

Coal India share price

The Coal India stock rose as much as 2% in trade on the NSE on Thursday to hit a high of ₹483.8 apiece, a day before the release of September quarter results.

However, despite the rise in the share price, the stock is still down over 1% in the past five trading sessions. In the past one month, the share price has corrected over 5%.

Year-to-date, Coal India shares have gained over 25%, while rallying more than 54% in the past one year.

Shares of Coal India were trading 0.69% higher at ₹477.35 apiece on the NSE at 12:25 pm.