State-run coal miner Coal India's second quarter profit is seen falling 15.5 percent year-on-year to Rs 2,150 crore and revenue may decline 0.9 percent to Rs 16,800 crore, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit during the quarter is likely to increase 4.6 percent to Rs 2,590 crore and margin may expand 80 basis points to 15.4 percent compared with year-ago period.
Analysts say weak volumes coupled with subdued e-auction pricing may weigh on earnings.
Topline is expected to be impacted by sales volumes offtake (down 4.9 percent at 116 MT) and muted demand resulting in a decline in offtake in quarterly volume after almost 5 years.
Fuel supply agreement volumes were down but pricing was stable while e-auction volumes were strong but pricing was under pressure, analysts say.
Weak realisations likely despite price hikes:
-Coal India hiked price 6.29 percent on average in May-end .
-E-auction realisation is likely to come in at approximately Rs 1600 per tonne (down 10 percent YoY).
Blended realisations likely to come in lower on a YoY basis due to:
-Strong supply by Coal India
-Industrial demand remains subdued
Margin could improve, despite a significant decline in e-auction prices:
-Due to higher e-auction volumes
PAT may be hit due to lower other income
Key issues to watch out for
-E-auction volumes and realisation
-Global coal prices
-Coal price hike
