Why Coal India Shares Are Slumping After Q4 Earnings

Coal India’s share price was down over 2% on Monday as the company’s Q4 earnings disappointed investors.

What Happened: The company’s consolidated revenue from operations stood at ₹38.152.34 crore, up 16.65% year-over-year. Net sales were at ₹35,161 crore in the March quarter up 17% compared to the year-ago period.

The company’s net profits for the review quarter slumped close to 18% YoY and 30% sequentially to ₹5,527.62 crore. The company attributed the slump to increase in provisions for wages made by the company. “PAT would have been the highest ever profit in any quarter had the provision not been made,” the company added in a statement.

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However, the company posted record profits for the year ended March at ₹28,125 crore, up 62% from the ₹17,378 crore profit it booked in FY22 (April 2021-March 2022). Earnings per share for the quarter stood at ₹8.98. The company also declared a ₹4/share dividend.

Brokerages had a mixed reaction to the company’s numbers. JP Morgan maintained its ‘overweight’ rating for the stock with a price target of ₹290. Nuvama also maintained its ‘buy’ call for the stock with a price target of ₹301. Jefferies, on the other hand, maintained its ‘hold’ rating for the stock with a price target of ₹225.

Price Action: Coal India’s share price was down 2.74% to trade at ₹230.90 in the afternoon hours of trading on Monday.

Read Next: Adani Power Shares Jump After Q4 Results: Here’s Why

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