Coal news and updates

Coal India Q1 net falls 6.7% to Rs 3764cr, below estimates

State-run mining major Coal India said its first-quarter revenues rose 6.5 percent year-on-year to Rs 18,955 crore while net profit fell 6.7 percent to Rs 3,764.35 crore. A CNBC-TV18 poll of analysts had forecast the firm to clock profit of Rs 4,040 crore on revenues of Rs 19,260 crore. At the operating level, earnings before interest and tax (EBIT) came in at Rs 4,386 crore, below street estimates of Rs 4,718 crore. The company said its first quarter production and offtake stood at 121.35 and 129.39 million tonne, compared to 108.32 and 119.6 mt, year-on-year. "The numbers are largely in line with our estimates," Piyush Jain of Morningstar India told CNBC-TV18. "The results show Coal India has been able to ramp up volumes and has been able to maintain margins thanks to higher e-auction volumes," he said. Coal India shares have corrected 15 percent over the past one week, and are now trading closer to Morningstar's fair value estimate of Rs 380. "If the stock falls more, it would become attractive and investors can expect a 10-15 percent gain over the next year or so," Jain said.

source: http://www.moneycontrol.com