Investors with interest in Coal India need to keenly track an increase in fuel supply agreement prices and wage negotiation
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The results for Coal India Ltd (CIL; CMP: Rs 160) were below expectations. E-auction realisation disappointed, growing by just 2 percent quarter on quarter (QoQ), despite high international coal price. September 2021 quarter results Production volumes remained flat while sales volumes declined QoQ. Realisation remained flat QoQ, with fuel supply agreement (FSA) realisation lower by 1 percent, washed coal realisation higher by 38 percent and e-auction realisation increasing by 2 percent. Eighty percent of the sales volumes by CIL are under…
