Bookmark and Share

Coal India Ltd. – 10 Interesting Facts, Financial Information & Competition Analysis

0 Comment

Coal India

Coal India Limited (CIL) is an organized state owned coal mining corporate, which came into being in November 1975, with the government taking over private coal mines. With a modest production of 79 Million Tonnes (MTs) at the year of its inception, CIL is the single largest coal producer in the world today.

Operating through 81 mining areas, CIL is an apex body with 7 wholly owned coal producing subsidiaries and a mine planning and Consultancy Company spread over 8 provincial states of India. In April 2011, CIL was conferred the Maharatna status by the Union Government of India and ranked as one of India’s most valuable companies by market value

The Coal India Limited aims to produce the planned quantity of coal efficiently and economically, with due regard to safety, conservation and quality.

Dependency on Coal India for Energy & Coal Requirement

  1. Produces around 81.1% of India’s overall coal production
  2. In India where approximately 52% of primary commercial energy is coal dependent, CIL alone meets 40% of primary commercial energy requirement
  3. Commands nearly 74% of the Indian coal market
  4. Feeds 82 out of 86 coal based thermal power plants in India
  5. Accounts for 76% of total thermal power generating capacity of the Utility sector
  6. Supplies coal at prices discounted to international prices
  7. Insulates Indian coal consumers against price volatility.

CIL is a low cost producer and enjoys a competitive advantage over its global peers primary due to:

  • Large Coal reserves,
  • Lower cost of mining and
  • Lower Capex costs.

Coal India – Facts

  1. CIL contributes around 85% of coal production in India
  2. Largest company in the world in terms of coal production
  3. Employs nearly 397,000 personnel and is the largest corporate employer in the country
  4. One of the largest companies in the country, with turnover being around INR 386.31 billion in 2007-08
  5. One of the largest tax payer, Corporate Tax INR 35.75 billion (US$647.08 million) in 2007-08
  6. Paid Dividend of INR 17.054 billion (US$308.68 million) to the Govt. of India in 2007-08
  7. CIL produces over 400 Million Tonnes of Coal annually
  8. Production ending Financial Year 2011 was 431.32 Million Tonnes (MTs)
  9. CIL leaped from 300 MTs mark achieved in 2003-04 to 400 MTs (2008-09) in a time span of 5 years, whereas previously it took CIL 12 years to cross the 300 MTs production mark from that of 200 MTs achieved in 1991-92
  10. Targeted production 452 MTs in FY 2012.

Also Read about Coal Advantages & Disadvantages.

Financial Information

In 2010, CIL’s initial public offering (IPO) got subscribed 15.28 times, collecting a record over 2.4 trillion—the highest IPO subscription so far. On the first day of its listing on the Sensex, its stock closed 40% higher than IPO price. It is India’s largest ever public offer from Coal India Ltd. to raise up to 15,000 Crore. It is currently 90% owned by the Government of India with the remaining 10% owned by the public.

MARKET CAP (RS CR)
2,27,673.35
P/EINDUSTRY P/E
27.7117.74
BOOK VALUE (RS)EPS (TTM)
30.9713.01
P/CPRICE/BOOK
27.6811.64

Investment Valuation Ratios

Net Operating Profit Per Share (Rs)0.66
Profitability Ratios 
Operating Profit Margin(%)-28.02
Profit Before Interest And Tax Margin(%)-1.29
Gross Profit Margin(%)-29.69
Cash Profit Margin(%)85.69
Net Profit Margin(%)84.73
Return On Capital Employed(%)43.29
Liquidity And Solvency Ratios 
Current Ratio2.41
Quick Ratio2.4
Debt Equity Ratio0.06

Competition Analysis

Competition
NameMarket Cap (Rs. cr.)Net Profit
Coal India2,26,852.238,065.10
NMDC64,367.167,265.39
Sesa Goa17,108.261,679.94
Guj Mineral6,450.63486.83
MOIL4,403.28410.77
Orissa Minerals2,623.623.44
Indian Metals &766.3263.93
Ashapura Mine388.376.61
Rohit Ferro Tec332.840.31
20 Microns231.3710.78
Maithan Alloys167.947.74
Parrys Sugar114.88-6.37
Impex FerroTech39.473.59
Hira Ferro37.224.83
Resurgere Mines27.84-77
AML Steel60.03

Coal in India – Future Outlook

According to International Energy Agency (IEA)’s World Energy Outlook 2012 report India, China and West Asian nations will account for 60% of the world’s energy demand by 2035, when the price of imported crude oil will be $215 a barrel in nominal terms.

India, the other big Coal market, has more than 450 proposed Coal plants on the book – and it also has a desperate need to increase electricity generation, as this summer’s massive New Delhi blackout demonstrated. The International Energy Agency recently predicted that India will overtake the U.S. as the second biggest user of Coal, after China by 2025 and will be the largest net importer of Coal as early as 2020. Indian Prime Minister Manmohan Singh, has promised to electrify every household in the next five years. By 2025, India will also be the world’s second largest consumer of Coal after China, playing a major role in international energy pricing.

Win A SOLAR LIGHT Daily on GWI! from 21st Jan, 2013.

PG

Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

You might also like:

 

No Responses so far | Have Your Say!

Leave a Reply