Coal India Rating: Buy; August output/offtake lowest in 3 years
Posted on 7th September 2019 |
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| Coal India (CIL) has reported a 10% y-o-y decline each in August production and sales volume, now down to their lowest levels in the past three years. Key highlights: (i) Larger subsidiaries MCL (Mahanadi Coalfields Ltd) and SECL (South-Eastern Coalfields Ltd) accounted for the bulk of the decline; (ii) continued low rake availability – down to 178/day in August from 205/day in July—dampened offtake; (iii) production volume was hit by fatalities at MCL and SECL and higher-than-normal rainfall. That said, we expect an uptick in production/offtake Q3 onwards as: (i) weather-related issues subside; (ii) rake availability improves; and (iii) production normalises at MCL and SECL. Hence, we do not believe our FY20e volume growth of 4.6% is at risk, but note that CIL’s target of 8.5% is daunting. That said, a healthy dividend yield and free cash flow are positives. Maintain Buy with a TP of Rs 235 (8.6x FY21e EPS). August production/offtake disappoint CIL’s August 2019 production and offtake volume decline is the worst in the past three years. Production and offtake slid 10% y-o-y each to 34.8mt and 40.5mt, respectively. Key highlights: (i) Production at MCL was impacted by about 3mt owing to fatalities in late July; (ii) SECL’s production was impacted by fatalities due to a mine accident on 20 August, not to mention the delay in finalisation of subcontracts; and (iii) production at WCL (Western Coalfields Ltd) dipped owing to higher-than-expected rainfall in August. On the offtake front, lower rake availability led to loading of 178 rakes/day compared with 205/day in July 2019. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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