Coal India is set to report its December-quarter earnings on Tuesday. The numbers are expected to be slightly weak this quarter. Here are the key expectations:
- In terms of sales, the street is expecting a contraction to the tune of 10 percent approximately.
- The operating profit will take a harder hit — expected to be down nearly 25 percent. This means that the margins will see a contraction of around 400-500 basis points (bps) and that reflects in its net profit as well.
- The analysts are expecting 141 million tonnes of sales volumes — a degrowth of around 8 percent. The lower sales volumes are due to factors like a delayed monsoon, lower offtake from power producers, flooding at some subsidiaries, etc.
- On a year-on-year (YoY) basis, e-auction prices have seen a sharp contraction. The prices have come down more than 10 percent which were nearly around Rs 2,700-2,800 per tonne same time last year which is likely to add to the pressure.