Coal India (COALINDIA) Q4 08/09 earnings summary

Executive summary

• FY09 raw coal production reached a record 403.73 Mt, up 6.4% YoY; coal dispatch rose 6.96% to 401.46 Mt.

• Navratna status, awarded in Oct 2008, expanded approval powers and operating and financial autonomy to accelerate project execution.

• Despite higher sales, consolidated profit fell sharply as retrospective wage revisions added ₹8,348.70 crore of FY09 expense.

Financial highlights

• Consolidated gross sales were ₹45,796.59 crore, up 17.8% YoY; net sales were ₹38,788.83 crore, versus ₹32,633.86 crore in FY08.

• Consolidated PBT was ₹5,744.10 crore versus ₹8,738.46 crore; PAT was ₹2,078.69 crore versus ₹5,243.27 crore.

• Excluding wage revisions, consolidated PBT was ₹14,092.80 crore versus ₹10,494.53 crore, a 34.29% increase; FY09 wage-revision expense was ₹8,348.70 crore.

• Recommended dividend was ₹270 per fully paid equity share, totaling ₹1,705.42 crore before dividend tax.

Outlook and guidance

• Production targets: 435 Mt in FY10, 520.5 Mt in FY12 and 664 Mt by FY17.

• Plans included developing seven underground mines and reviving 18 abandoned mines with estimated reserves above 1,600 Mt.

• By FY12, plans called for 19 washery projects with 100.6 Mtpa of washing capacity, targeting washed coal supply to non-pithead consumers.

• Satellite monitoring was planned for 49 mining projects in FY10, following baseline imagery for 35 open-cast projects in FY09.