Coal India (COAL) has released its H1 FY11 earnings report. We calculate the Q2FY11 PAT at Rs14.9bn, was down 41% q/q while EBITDA stood at Rs23.7bn, was down 34% q/q. Y/Y comons are not possible given the lack of quarterly data on historical basis. Net coal revenues declined 3% q/q. While
COAL has not released separate volume data, from the company’s Daily Production Report (DPR), we estimate coal production in Q2 stood at ~91MT, down 5% q/q, while coal off take stood at 98.7MT down 2% q/q. As per our estimates, Net coal realizations were modestly down by 1% q/q (we find this difficult to explain), while EBITDA/MT declined to Rs240/MT from Rs356/MT in Q1.
We believe the Rs10bn q/q decline in PAT was essentially driven by 3 items-a) Rs3.5bn decline in net coal revenues, partly explained by 2.2MT lower coal sales as per our estimates, b) higher employee expenses of Rs4.5bn (10% q/q increase), and c) Rs2bn increase in stores and spares expenses
