Coal India Q1FY25 Earnings Today, Expect Margin To Remain Largely Flat | CNBC TV18
Summary
TLDRCoal India is set to release its financial results, with expectations of a flat top line and a potential 2% decline in earnings. The operational numbers show a 5-1.5% volume increase, but the top line remains flat due to lower e-auction pricing. Analysts estimate a profit of around 8,000 crores with a margin of 28.5%. The focus will be on pricing trends, particularly in e-auctions, power demand, and any plans for the company's cash reserves. A potential price hike will be closely monitored.
Takeaways
- đ Coal India's Top Line is expected to be flat despite a 5-1/2% increase in volumes.
- đ There might be a 2% decline in Coal India's bitter number.
- đŒ Profit numbers are anticipated to be around 8,000 crores.
- đ Realizations are expected to be lower due to pressure on e-auction pricing.
- đ The street is prepared for lower blended realizations offsetting any volume gains.
- đ Margins are expected to compress due to weak pricing, with estimates suggesting a decline of 30-35%.
- đ Volumes are expected to be slightly higher, which may offset some of the realization decline.
- đŒ The margin number is projected to be around 28-1/2%.
- đ Analysts will be closely watching the pricing trends, especially in e-auctions, power demand, and any cash initiatives.
- â ïž There is a possibility of a price hike that needs to be monitored closely.
Q & A
What is the expected financial performance of Coal India for the upcoming report?
-The financial performance of Coal India is anticipated to show a flat top line with a possible decline of around 2%. The profit numbers are expected to be around 8,000 crores.
Why is the top line of Coal India expected to be flat despite an increase in volumes?
-The top line is expected to be flat because although volumes are up by approximately 5.5%, realizations are expected to be down due to pressure on e-auction pricing.
What is the impact of e-auction pricing on Coal India's financials?
-E-auction pricing is under pressure, leading to lower blended realizations, which offset any positive impact from increased volumes on the top line.
How are the margins expected to be affected by the weak pricing?
-Margins are expected to compress due to weak pricing, with an estimated decline of around 30 to 35% in e-auction prices.
What is the expected margin percentage for Coal India in the upcoming report?
-The expected margin percentage for Coal India is around 28.5%.
What operational factors are expected to offset the impact of low realizations?
-The increase in volumes is expected to partly offset the impact of low realizations from e-auctions, providing some operating leverage.
What are the key areas of focus for investors in Coal India's upcoming report?
-Investors should focus on how pricing is shaping up, particularly in e-auctions, the state of power demand, and any plans regarding cash in the books.
Is there any expectation of a price hike in Coal India's operations?
-There is a possibility of a price hike that investors will need to track closely.
What is the significance of the upcoming numbers for Tata Steel and Coal India?
-The upcoming numbers for both Tata Steel and Coal India are significant as they are expected to provide insights into the performance of these companies during a busy financial reporting period.
What are the expectations regarding cash management in Coal India's upcoming report?
-Investors will be looking for information on how Coal India plans to manage its cash, especially considering the potential impact of lower realizations on cash flow.
Outlines
đ Coal India's Upcoming Earnings Insights
The script discusses the expectations for Coal India's financial results, which are due later in the evening. It is anticipated that the company's top line will be flat, with a possible decline of around 2%. The profit figures are expected to be approximately 8,000 crores. Despite a volume increase of about 5-1/2%, the top line remains flat due to lower realizations, primarily influenced by the pressure on e-auction pricing. The street is prepared for this, and the blended realizations are expected to be lower, offsetting any positive impact from volume growth. Margins are also expected to compress due to weak pricing. E-auction prices are estimated to decline by 30 to 35%, although higher volumes might partially offset this. The operational margin is expected to be around 28-1/2%. The commentary will focus on pricing trends, particularly in e-auctions, power demand, and the company's plans for its cash reserves. There is also a mention of the need to closely monitor any potential price hikes.
Mindmap
Keywords
đĄCoal India
đĄTop Line
đĄRealizations
đĄE-auction
đĄVolumes
đĄMargins
đĄOperational Numbers
đĄProfit
đĄCash on Books
đĄPrice Hike
đĄPower Demand
Highlights
Coal India's Top Line is expected to be flat.
There might be a decline in Coal India's numbers by around 2%.
Profit numbers for Coal India are anticipated to be around 8,000 crores.
Operational numbers for Coal India are already in.
Volumes are up by approximately 5.5%, yet the Top Line remains flat.
Realizations are expected to be lower due to pressure on e-auction pricing.
The street is prepared for lower blended realizations.
Margins are expected to compress due to weak pricing.
E-auction prices are estimated to decline by 30 to 35%.
Volumes are expected to be slightly higher, offsetting some of the realization pressure.
The margin number is anticipated to be around 28.5%.
Pricing, particularly on the e-auction side, will be a key area of focus.
Power demand trends will be closely monitored.
Plans for cash in books will be of interest.
A potential price hike will be closely tracked.
Tata Steel is also expected to release numbers later in the evening.
Transcripts
what about coal India as well Nigel
that's also coming coming out with
numbers later this evening what's
expected from there well that's right uh
for coal India as well it's going to be
a busy evening with Tel and Co India as
well for coal India Top Line as flat as
can be a bitter number could see a bit
of a decline by closer around 2% and
profit numberers should be in the
vicinity of around 8,000 crores the
operational numbers are already in and
the Top Line well it's flat because we
have seen already that the volumes are
up by close around 5 1 half% but then
why is the Top Line flat because
realizations will be down predominantly
because the e auction pricing has been
under pressure and the street is
prepared for that so Blended
realizations will be lower that offsets
any kind of uh good work done on the top
line on the volumes the margins as well
will see a compression because pricing
is weak and noama they have put out some
estimates the e auction prices they are
working with a decline of around 30 to
35% the volumes though will be little
bit higher so that will partly offset uh
you know the pain that will be seen on
the realization front low realizations
from e auction that offsets any kind of
operational uh uh you know beat uh
operating leverage that we see as well
so around the 28 a half% is the margin
number the commentor track will be how
is pricing shaping up particularly on
the e auction side of things how is
power demand and uh what do they plan on
doing with the cash init books also
watch out in case there's a price hike
that's something that we'll have to
track very very closely back to
you okay all right n thanks very much
for that so that's on coal India and
Tata Steel
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