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Motilal Oswal Report
Coal India Ltd.'s Q4 FY23 revenue was up 17% YoY and 9% QoQ at Rs 382 billion, largely in line with our estimate of Rs 363 billion, driven by high volumes and realisations.
Average selling price grew YoY for all categories, while blended ASP rose 13% YoY and 2% QoQ to Rs 1,877/tonne. E-auction ASP jumped 86% YoY to Rs 4,525/tonne (down 10% QoQ).
E-auction premium eased to 192% from an all-time high of 329% in Q2 FY23 and 241% in Q3 FY23, but it was still above the historical average. Adjusted Ebitda (net of overburden removal) was down 31% YoY and 23% QoQ at Rs 86 billion.
The Ebitda miss was a result of higher provisions of Rs 59 billion toward National Coal Wage Agreement-XI wage provisions, which led to an increase in employee expenses to Rs 170 billion against our estimate of Rs 135 billion. Excluding the provisions, adjusted Ebitda would have been in line with our estimate at ~Rs 120 billion.
Adjusted profit after tax fell 18% YoY and 28% QoQ to Rs 55 billion, below our estimate of Rs 87 billion.
Production grew 7% YoY and 25% QoQ to 224 million tonne. Sales (dispatches) rose 4% YoY and 7% QoQ to 187 million tonne. Coal India exceeded its yearly production target in FY23 and clocked incremental sales of 80 million tonne in a year, which is equivalent to combined growth of the last seven years and the highest since inception.
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