COAL INDIA 2023-24 Annual Report Analysis

Tue, 30 Jul

COAL INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

COAL INDIA Income Statement Analysis

• Operating income during the year fell 0.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 53.7% in FY24 as against 51.7% in FY23.
• Depreciation charges decreased by 1.4% and finance costs increased by 19.7% YoY, respectively.
• Other income grew by 39.3% YoY.
• Net profit for the year grew by 17.8% YoY.
• Net profit margins during the year grew from 40.5% in FY23 to 47.7% in FY24.

COAL INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	783,668	783,288	0.0%
Other income	Rs m	102,514	142,754	39.3%
Total Revenues	Rs m	886,182	926,042	4.5%
Gross profit	Rs m	405,404	420,920	3.8%
Depreciation	Rs m	68,329	67,354	-1.4%
Interest	Rs m	6,843	8,194	19.7%
Profit before tax	Rs m	432,746	488,126	12.8%
Tax	Rs m	115,516	114,435	-0.9%
Profit after tax	Rs m	317,230	373,691	17.8%
Gross profit margin	%	51.7	53.7
Effective tax rate	%	26.7	23.4
Net profit margin	%	40.5	47.7

Don't Miss: Key Information for Long-term Investors

COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 613 billion as compared to Rs 688 billion in FY23, thereby witnessing an decrease of -10.9%.
• Long-term debt stood at Rs 56 billion as compared to Rs 41 billion during FY23, a growth of 36.8%.
• Current assets fell 4% and stood at Rs 1,039 billion, while fixed assets rose 17% and stood at Rs 1,306 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2,345 billion as against Rs 2,196 billion during FY23, thereby witnessing a growth of 7%.

COAL INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	608,429	827,298	36.0
Current Liabilities	Rs m	687,734	612,725	-10.9
Long-term Debt	Rs m	41,063	56,172	36.8
Total Liabilities	Rs m	2,196,161	2,345,310	6.8
Current assets	Rs m	1,080,837	1,038,834	-3.9
Fixed Assets	Rs m	1,115,324	1,306,476	17.1
Total Assets	Rs m	2,196,161	2,345,310	6.8

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 181 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -45 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -139 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 billion from the Rs -14 billion net cash flows seen during FY23.

COAL INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	357,340	181,031	-49.3%
Cash Flow from Investing Activities	Rs m	-234,655	-44,858	-
Cash Flow from Financing Activities	Rs m	-137,044	-138,993	-
Net Cash Flow	Rs m	-14,359	-2,820	-

Current Valuations for COAL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.6, an improvement from the EPS of Rs 51.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 514.0, stands at 9.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	127.2	127.1
TTM Earnings per share	Rs	51.5	60.6
Diluted earnings per share	Rs	51.5	60.6
Price to Cash Flow	x	3.4	4.9
TTM P/E ratio	x	4.5	9.9
Price / Book Value ratio	x	2.2	2.6
Market Cap	Rs m	1,318,978	2,161,423
Dividends per share (Unadj.)	Rs	24.3	25.5

Ratio Analysis for COAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 60.6x during FY24, from 64.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 45.2% during FY24, from 52.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 56.2% during FY24, from 67.7% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 16.3% during FY24, from 14.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.6	1.7
Debtors’ Days	Days	6	6
Interest coverage	x	64.2	60.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	14.8	16.3
Return on equity	%	52.1	45.2
Return on capital employed	%	67.7	56.2

To see how COAL INDIA has performed over the last 5 years, please visit here.

COAL INDIA Share Price Performance

Over the last one year, COAL INDIA share price has moved up from Rs 227.3 to Rs 514.0, registering a gain of Rs 286.7 or around 126.2%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for COAL INDIA and quarterly results for COAL INDIA)