Coal news and updates

Coal India Q3 profit seen down 6.5% at Rs 3640 cr: Poll

Coal India's third quarter profit after tax is expected to fall 6.5 percent year-on-year to Rs 3,640 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Coal India 's third quarter profit after tax is expected to fall 6.5 percent year-on-year to Rs 3,640 crore, according to the average of estimates of analysts polled by CNBC-TV18.

Net sales is seen rising 4.3 percent to Rs 17,650 crore during October-December quarter from Rs 16,928 crore in the year-ago period. Operating profit may slip 4.9 percent on yearly basis to Rs 3,902 crore and margin may decline 210 basis points to 22.1 percent in the quarter gone by.

Factors:
-Coal India provisional offtake for Q3 stood at 128 million tonnes versus 117 million tonnes, up 9 percent Y-o-Y. -Blended realization is expected to be lower by 4 percent due to significant diversion of eAuction coal
-CIL has diverted e-auction volume to meet power sector coal needs as directed by Coal ministry
-EBITDA miss may be possible due to decline in e-auction volume
-E-auction volumes may drop to 8-10 million tonnes in Q3FY15 from 15.1 million tonnes in Q3FY14, though e-auction realizations may increase to Rs 2,500 per tonne against Rs 2,232 per tonne in Q3FY14

Key issues to watch out for
-Volume mix, realization trend and guidance for FY15
-Modalities of coal import
-News flows on price hike

Source: Moneycontrol