Coal India's Financial Results for Q2 FY25 Show Decline in Profitability and Sales.

Oct 26 2024 11:01 AM IST
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Coal India, one of India's top mining and minerals companies, reported a negative performance in the quarter ended September 2024. The company's PBT and PAT have decreased by 20.40% and 21.9% respectively, while its operating cash flow and net sales have also seen a decline. This has resulted in lower EPS and DPR, indicating a need for improvement in the company's performance.

Coal India, one of the largest mining and minerals companies in India, recently announced its financial results for the quarter ended September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.


According to the financials, Coal India has seen a negative performance in the quarter, with a score of -14 compared to 0 in the previous quarter. This is a cause for concern for the company and its investors.


One of the major factors contributing to this decline is the fall in Profit Before Tax (PBT) and Profit After Tax (PAT). PBT has fallen by 20.40% year on year, while PAT has fallen by 21.9% year on year. This trend is expected to continue in the near term.


The company’s operating cash flow has also been on a downward trend, with a decrease in each of the last three years. This indicates that the company’s cash revenues from business operations are falling.


In terms of sales, Coal India has seen a negative trend in the near term, with net sales at its lowest in the last five quarters. The company’s net sales have also decreased by 6.42% year on year.


The decline in profitability is evident in the company’s earnings per share (EPS), which is at its lowest in the last five quarters. This means that the company has created lower earnings for its shareholders.


Additionally, Coal India’s dividend payout ratio (DPR) has also been on a downward trend, with the lowest at 42.02% in the last five years. This indicates that the company is distributing a lower proportion of its profits as dividends.


Overall, the financial results for the quarter ended September 2024 have not been favorable for Coal India. The company will need to address these issues and work towards improving its performance in order to regain investor confidence.


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