Coal India’s Shares Skyrocket After Impressive Profit Surge

On Tuesday, shares of Coal India surged 1.50 per cent to Rs 236.40 per share from its previous closing of Rs 232.90. 

Coal India Limited (CIL) has reported an astounding 62% growth in its profit after tax (PAT) for the fiscal year 2022-23, amounting to Rs. 28,125 crore, a substantial increase from Rs. 17,378 crore recorded in FY 2021-22. The company’s profitability was driven by higher volume sales and increased premiums in e-auctions. 

In Q4 FY 2022-23, CIL achieved a profit before tax (PBT) of Rs. 7,642 crore and a PAT of Rs. 5,528 crore. This remarkable performance was the result of strategic initiatives taken by the company. 

CIL’s board has announced a final dividend of Rs. 4 per share, reflecting the company’s robust financial standing. The net sales for both Q4 and the entire fiscal year 2022-23 were the highest ever recorded. Net sales in Q4 FY 2022-23 amounted to Rs. 35,161 crore, showing a 17% increase compared to Q4 FY 2021-22. For the full fiscal year, net sales stood at Rs. 1,27,627 crore, marking a significant jump of 27% compared to the previous fiscal year. 

Coal India Ltd, a major domestic coal company, has announced its ambitious investment plan of Rs 91,000 crore for various projects by 2025-26. To promote indigenous technology and foster innovation, Coal India has entered into agreements with BHEL, GAIL and IOCL. 

Being a part of the S&P BSE 100 Index, Coal India is considered a large-cap stock. Remarkably, the company maintains a low debt profile, with a current debt of only Rs. 3,916 crore, which accounts for just 2% of its market capitalization. Moreover, CIL consistently maintains a healthy dividend payout of 60.8% with a dividend yield of 8.53%. 

With a price-to-earnings (PE) ratio of 5.50x, return on equity (ROE) of 89.69% and return on capital employed (ROCE) of 60%, Coal India showcases strong financial metrics. On Monday, the company’s shares experienced a marginal decline of 0.06%, reaching Rs. 237.35 per share. 

Investors are advised to closely monitor this hidden gem within the PSU sector, as Coal India demonstrates the potential for future growth.