Financial analysis coal india

Presenter :

Shaikh Shoaib MFM

Shabbir Nizammuddin MFM

Mohammed Arif MFM

Mohammed Shakil MFM

Shaikh Kauser MFM

FINANACIAL STATEMENTS ANALYSIS

© 2012 Shoaib Shaikh. All rights reserved.

COAL INDIA LIMITED

Introduction to Industry


• The Indian coal industry is the world’s third largest in terms of production and fourth largest in terms of reserves.

• Coal is the most dominant energy source in India's energy scenario.

• Around 70% of the total production is used for electricity generation and the remaining by the steel, cement and other heavy industries.

• Coal is also used as fuel for domestic purposes

• Despite having one of the largest reserves, the Indian coal industry does not hold a position in the league of global energy suppliers.

Major Players: • Coal India Limited • Singerani Collieries Company: It operates through a network of 50 mines. • Minerals and Metals Trading Corp: It is responsible for the conversion of

imported coal into coke for metallurgical and industrial purposes.

About Coal India Limited

• Coal India Limited (CIL) came into being in November 1975 with the government taking over private coal mines.

• Produces around 81.1% of India's overall coal production

• In India where approximately 52% of primary commercial energy is coal dependent, CIL alone meets to the tune of 40% of primary commercial energy requirement

• Commands nearly 74% of the Indian coal market

• Supplies coal at prices discounted to international prices

• India and the world's largest coal miner with revenue exceeding Rs.624.15 billion (FY 2012).


Financial Performance Review – Balance Sheet


Rs. In Crore

% to Total

Asset /

Liability Rs. In Crore

% to Total

Asset /

Liability

Equity Share Capital 6316.36 30.46% 6316.36 30.36% 0.00%

Reserves 13248.39 63.88% 13121.02 63.06% 0.97%

Secured Loan 0 0.00% 0 0.00% 0.00%

Unsecured Loan 1173.54 5.66% 1370.43 6.59% -14.37%

Total Liability 20738.29 100.00% 20807.81 100.00% -0.33%

Gross Block 408.98 1.97% 387.46 1.86% 5.55%

Depreciation 295.42 1.42% 289.13 1.39% 2.18%

Net Block 113.56 0.55% 98.33 0.47% 15.49%

Capital Work-in-progress 60.75 0.29% 55.67 0.27% 9.13%

Investments 6541.19 31.54% 6319.17 30.37% 3.51%

Current Assets, Loans & Advances 23996.7 115.71% 21179.95 101.79% 13.30%

Less : Current Liabilities &

Provisions 9973.91 48.09% 6845.31 32.90% 45.70%

Total Net Current Assets 14022.79 67.62% 14334.64 68.89% -2.18%

Total Assets 20738.29 100.00% 20807.81 100.00% -0.33%

FY 2011 - 2012 FY 2010 - 2011

YoY Growth

Source of Funds

Application of Funds

Financial Performance Review – Profit & Loss


Rs. In

Crore

% to Total

Income

Rs. In

Crore

% to Total

Income

Sales Turnover (Net sales) 415.86 4.38% 461.31 8.32% -9.85%

Other Income 9,101.71 95.80% 5,074.74 91.53% 79.35%

Stock Adjustment -17.06 -0.18% 8.54 0.15% -299.77%

Total Income 9,500.51 100.00% 5,544.59 100.00% 71.35%

Raw Materials 3.74 0.04% 8.57 0.15% -56.36%

Power & Fuel 5.45 0.06% 6.92 0.12% -21.24%

Employee Cost 345.34 3.63% 237.71 4.29% 45.28%

Other Expenses 52.34 0.55% 39.01 0.70% 34.17%

Selling Expenses 9.48 0.10% 239.57 4.32% -96.04%

Miscellaneous Expenses 98.98 1.04% 63.99 1.15% 54.68%

Total Expenses 515.33 5.42% 595.77 10.75% -13.50%

Operating Income -116.53 -1.23% -125.92 -2.27% -7.46%

PBDIT 8,985.18 94.58% 4,948.82 89.25% 81.56%

Interest 378.73 3.99% 222.89 4.02% 69.92%

PBDT 8,606.45 90.59% 4,725.93 85.23% 82.11%

Depreciation 6.96 0.07% 5.57 0.10% 24.96%

Profit Before Tax 8,599.49 90.52% 4,720.36 85.13% 82.18%

Extra-ordinary items -84.39 -0.89% 165.72 2.99% -150.92%

PBT (Post Extra-ord Items) 8,515.10 89.63% 4,886.08 88.12% 74.27%

Tax 450 4.74% 190 3.43% 136.84%

Net Profit 8,065.10 84.89% 4,723.56 85.19% 70.74%

Equity Dividend 6316.36 2463.38 156%

Earning Per Share (Rs) 12.77 7.48 70.72%

Expenditure

FY 2011 - 2012 FY 2010 - 2011YoY

Growth

Income

Financial Performance Review – Cash Flow


FY 2011 - 2012 FY 2010 - 2011

Rs. In Crore Rs. In Crore

Net Profit Before Tax 8599.95 4723.37 82.07%

Net CashFlow-Operating Activity 9101.71 5074.74 79.35%

Net Cash Used In Investing Activity 829.61 -199.33 -516.20%

NetCash Used in Fin. Activity -6474.76 -2065.19 213.52%

Net Increase /Deacrease in Cash -170.48 156.11 -209.21%

Cash And Equivalnt Begin of Year 476.78 217.27 119.44%

Cash And Equivalnt End Of Year 306.3 373.37 -17.96%

YoY Growth

Key Financial Highlights

• `Sales Turnover has decrease to Rs. 415.86 Cr, 9.85 decrease YoY

• Total income increased to Rs. 9,500.51 Cr, 71.35% growth YoY

• PBT increased to 8,515.10 Cr, 74.27% Growth YoY

• Net Profit increase by 71% YoY

• Earning per share increase to 12.77, growth 71%

• Current Asset increased to 23996.7 growth 13.30% YoY


Dividend Declared

Trend of Share Price

Ratio Analysis - Liquidity


Current Ratio = Current Assets 2.41 = Rs. 23,997

Current Liabilities Rs. 9,974

= Current Assets – Current Liabilities 0.68 = Rs. 23,997 - Rs. 9,974

Total Assets

= Current Liabilities 164.18 = Rs. 9,974

Inventory Rs. 61

Operating Ratio = Operating Expenses 0.94 = Rs. 2,72,000

Operating Income Rs. 2,89,600

Marketing Expense = Marketing Expense 0.02 = Rs. 9

to Sales Ratio Total Sales Rs. 415.86

Rs. 20,738

Net Working Capital

Ratio

Current Liabilities to

Inventory Ratio

Asset Ratio


= Total Sales 3.66 = 415.86Rs.

Fixed Assets 113.56Rs.

Industry Average 2.00

Variance 1.66

Quarter Growth/Decline

Total Assets Ratio = Total Sales 0.02 = 416Rs.

Total Assets 20,738Rs.


Variance (1.98)


= Total Assets 1.06 = 20,738Rs.

Owners' Equity 19,565Rs.


Variance (0.94)


Fixed Assets Turnover

Ratio

Asset to Equity Ratio

Profitability Ratio


Return on Assets Ratio = Net Income 0.39 = Rs. 8,065.10

Average Total Assets Rs. 20,773.05

Return on Equity Ratio = Net Income 0.83 = Rs. 8,065.10

Average Owners' Equity Rs. 9,750.53

Profit Margin Ratio = Net Income 0.85 = Rs. 8,065.10

Total Sales Rs. 9,500.51

= Earnings Before Interest and Taxes 0.43 = Rs. 8,985.18

Total Assets Rs. 20,738.29

Earnings per Share Ratio = Net Income 0.32 = $8,065

Average Number of Common Shares 6316364

Basic Earnings

Power Ratio

Debt Ratio


Total Debt Ratio = Total Liabilities 182.62 = Rs. 20,738

Total Assets Rs. 114

= Earnings Before Interest and Taxes 23.72 = Rs. 8,985.18

Interest Expense Rs. 379

Debt/Equity Ratio = Total Liabilities 0.06 = Rs. 1,174

Owners' Equity Rs. 19,565

Loan to Value Ratio = Total Loan 0.17 = Rs. 1,174

Value of Collateral or Property Rs. 6,716

Interest Coverage Ratio

Market Ratio


Earnings per Share = Net Income $0.13 = 8,065.10Rs.

(EPS) Ratio Average Number of Common Shares 63,163.64Rs.


Variance (1.87)


Price to Earnings Ratio = Market Price per Share 29.12 = 371.90Rs.

Earnings per Share 12.77Rs.

Payout Ratio = Dividends Paid 0.00 = 9.90Rs.

Net Income 8,065.10Rs.

Thank You


Date post:	19-Jan-2015
Category:	Economy & Finance
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Financial analysis coal india

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