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Coal India: Here's why analysts predict a 25% fall in its FY21 earnings

Lockdown impact on volumes, lower e-auction share to hit profits

Coal India likely to auction 30 million tonnes of coal in Jan-Mar quarter
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E-auction realisations fell significantly by 24 per cent year-on-year to Rs 2,105 per tonne in Q4, say analysts.

Ujjval Jauhari
The steeper-than-expected fall in Coal India’s net profit for the March 2020 quarter (Q4) affected the Street's sentiment, with the stock declining 5 per cent on Monday.

The lockdown for nine days during Q4 meant coal sales volumes were flat at 164 million tonne (MT). The net profit fell by almost 23 per cent year-on-year (YoY) to Rs 4,626 crore, and was much less than the consensus estimate of Rs 5,024 crore. Though the decline was also due to a higher tax outgo, even profit before tax was down 16.3 per cent. Amid weak coal demand, the fall in high-margin e-auction

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First Published: Jun 29 2020 | 6:50 PM IST

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