Financial analysis coal india

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Ratio Analysis of Coal India

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Financial analysis coal india

  1. 1. FINANACIAL STATEMENTS ANALYSISCOAL INDIA LIMITEDPresenter :Shaikh Shoaib MFMShabbir Nizammuddin MFMMohammed Arif MFMMohammed Shakil MFMShaikh Kauser MFM© 2012 Shoaib Shaikh. All rights reserved.
  2. 2. Introduction to Industry • The Indian coal industry is the world’s third largest in terms of production and fourth largest in terms of reserves. • Coal is the most dominant energy source in Indias energy scenario. • Around 70% of the total production is used for electricity generation and the remaining by the steel, cement and other heavy industries. • Coal is also used as fuel for domestic purposes • Despite having one of the largest reserves, the Indian coal industry does not hold a position in the league of global energy suppliers. Major Players: • Coal India Limited • Singerani Collieries Company: It operates through a network of 50 mines. • Minerals and Metals Trading Corp: It is responsible for the conversion of imported coal into coke for metallurgical and industrial purposes.© 2012 Shoaib Shaikh. All rights reserved.
  3. 3. About Coal India Limited • Coal India Limited (CIL) came into being in November 1975 with the government taking over private coal mines. • Produces around 81.1% of Indias overall coal production • In India where approximately 52% of primary commercial energy is coal dependent, CIL alone meets to the tune of 40% of primary commercial energy requirement • Commands nearly 74% of the Indian coal market • Supplies coal at prices discounted to international prices • India and the worlds largest coal miner with revenue exceeding Rs.624.15 billion (FY 2012).© 2012 Shoaib Shaikh. All rights reserved.
  4. 4. Financial Performance Review – Balance Sheet FY 2011 - 2012 FY 2010 - 2011 % to Total % to Total YoY Growth Asset / Asset / Rs. In Crore Liability Rs. In Crore Liability Source of Funds Equity Share Capital 6316.36 30.46% 6316.36 30.36% 0.00% Reserves 13248.39 63.88% 13121.02 63.06% 0.97% Secured Loan 0 0.00% 0 0.00% 0.00% Unsecured Loan 1173.54 5.66% 1370.43 6.59% -14.37% Total Liability 20738.29 100.00% 20807.81 100.00% -0.33% Application of Funds Gross Block 408.98 1.97% 387.46 1.86% 5.55% Depreciation 295.42 1.42% 289.13 1.39% 2.18% Net Block 113.56 0.55% 98.33 0.47% 15.49% Capital Work-in-progress 60.75 0.29% 55.67 0.27% 9.13% Investments 6541.19 31.54% 6319.17 30.37% 3.51% Current Assets, Loans & Advances 23996.7 115.71% 21179.95 101.79% 13.30% Less : Current Liabilities & Provisions 9973.91 48.09% 6845.31 32.90% 45.70% Total Net Current Assets 14022.79 67.62% 14334.64 68.89% -2.18% Total Assets 20738.29 100.00% 20807.81 100.00% -0.33%© 2012 Shoaib Shaikh. All rights reserved.
  5. 5. Financial Performance Review – Profit & Loss FY 2011 - 2012 FY 2010 - 2011 YoY Rs. In % to Total Rs. In % to Total Growth Crore Income Crore Income Income Sales Turnover (Net sales) 415.86 4.38% 461.31 8.32% -9.85% Other Income 9,101.71 95.80% 5,074.74 91.53% 79.35% Stock Adjustment -17.06 -0.18% 8.54 0.15% -299.77% Total Income 9,500.51 100.00% 5,544.59 100.00% 71.35% Expenditure Raw Materials 3.74 0.04% 8.57 0.15% -56.36% Power & Fuel 5.45 0.06% 6.92 0.12% -21.24% Employee Cost 345.34 3.63% 237.71 4.29% 45.28% Other Expenses 52.34 0.55% 39.01 0.70% 34.17% Selling Expenses 9.48 0.10% 239.57 4.32% -96.04% Miscellaneous Expenses 98.98 1.04% 63.99 1.15% 54.68% Total Expenses 515.33 5.42% 595.77 10.75% -13.50% Operating Income -116.53 -1.23% -125.92 -2.27% -7.46% PBDIT 8,985.18 94.58% 4,948.82 89.25% 81.56% Interest 378.73 3.99% 222.89 4.02% 69.92% PBDT 8,606.45 90.59% 4,725.93 85.23% 82.11% Depreciation 6.96 0.07% 5.57 0.10% 24.96% Profit Before Tax 8,599.49 90.52% 4,720.36 85.13% 82.18% Extra-ordinary items -84.39 -0.89% 165.72 2.99% -150.92% PBT (Post Extra-ord Items) 8,515.10 89.63% 4,886.08 88.12% 74.27% Tax 450 4.74% 190 3.43% 136.84% Net Profit 8,065.10 84.89% 4,723.56 85.19% 70.74% Equity Dividend 6316.36 2463.38 156% Earning Per Share (Rs) 12.77 7.48 70.72%© 2012 Shoaib Shaikh. All rights reserved.
  6. 6. Financial Performance Review – Cash Flow FY 2011 - 2012 FY 2010 - 2011 YoY Growth Rs. In Crore Rs. In Crore Net Profit Before Tax 8599.95 4723.37 82.07% Net CashFlow-Operating Activity 9101.71 5074.74 79.35% Net Cash Used In Investing Activity 829.61 -199.33 -516.20% NetCash Used in Fin. Activity -6474.76 -2065.19 213.52% Net Increase /Deacrease in Cash -170.48 156.11 -209.21% Cash And Equivalnt Begin of Year 476.78 217.27 119.44% Cash And Equivalnt End Of Year 306.3 373.37 -17.96%© 2012 Shoaib Shaikh. All rights reserved.
  7. 7. Key Financial Highlights Dividend Declared • `Sales Turnover has decrease to Rs. 415.86 Cr, 9.85 decrease YoY • Total income increased to Rs. 9,500.51 Cr, 71.35% growth YoY • PBT increased to 8,515.10 Cr, 74.27% Growth YoY • Net Profit increase by 71% YoY Trend of Share Price • Earning per share increase to 12.77, growth 71% • Current Asset increased to 23996.7 growth 13.30% YoY© 2012 Shoaib Shaikh. All rights reserved.
  8. 8. Ratio Analysis - Liquidity Current Ratio = Current Assets 2.41 = Rs. 23,997 Current Liabilities Rs. 9,974 Net Working Capital = Current Assets – Current Liabilities 0.68 = Rs. 23,997 - Rs. 9,974 Ratio Total Assets Rs. 20,738 Current Liabilities to = Current Liabilities 164.18 = Rs. 9,974 Inventory Ratio Inventory Rs. 61 Operating Ratio = Operating Expenses 0.94 = Rs. 2,72,000 Operating Income Rs. 2,89,600 Marketing Expense = Marketing Expense 0.02 = Rs. 9 to Sales Ratio Total Sales Rs. 415.86© 2012 Shoaib Shaikh. All rights reserved.
  9. 9. Asset Ratio Fixed Assets Turnover = Total Sales 3.66 = Rs. 415.86 Ratio Fixed Assets Rs. 113.56 Industry Average 2.00 Variance 1.66 Quarter Growth/Decline Total Assets Ratio = Total Sales 0.02 = Rs. 416 Total Assets Rs. 20,738 Industry Average 2.00 Variance (1.98) Quarter Growth/Decline Asset to Equity Ratio = Total Assets 1.06 = Rs. 20,738 Owners Equity Rs. 19,565 Industry Average 2.00 Variance (0.94) Quarter Growth/Decline© 2012 Shoaib Shaikh. All rights reserved.
  10. 10. Profitability Ratio Return on Assets Ratio = Net Income 0.39 = Rs. 8,065.10 Average Total Assets Rs. 20,773.05 Return on Equity Ratio = Net Income 0.83 = Rs. 8,065.10 Average Owners Equity Rs. 9,750.53 Profit Margin Ratio = Net Income 0.85 = Rs. 8,065.10 Total Sales Rs. 9,500.51 Basic Earnings = Earnings Before Interest and Taxes 0.43 = Rs. 8,985.18 Power Ratio Total Assets Rs. 20,738.29 Earnings per Share Ratio = Net Income 0.32 = $8,065 Average Number of Common Shares 6316364© 2012 Shoaib Shaikh. All rights reserved.
  11. 11. Debt Ratio Total Debt Ratio = Total Liabilities 182.62 = Rs. 20,738 Total Assets Rs. 114 Interest Coverage Ratio = Earnings Before Interest and Taxes 23.72 = Rs. 8,985.18 Interest Expense Rs. 379 Debt/Equity Ratio = Total Liabilities 0.06 = Rs. 1,174 Owners Equity Rs. 19,565 Loan to Value Ratio = Total Loan 0.17 = Rs. 1,174 Value of Collateral or Property Rs. 6,716© 2012 Shoaib Shaikh. All rights reserved.
  12. 12. Market Ratio Earnings per Share = Net Income $0.13 = Rs. 8,065.10 (EPS) Ratio Average Number of Common Shares Rs. 63,163.64 Industry Average 2.00 Variance (1.87) Quarter Growth/Decline Price to Earnings Ratio = Market Price per Share 29.12 = Rs. 371.90 Earnings per Share Rs. 12.77 Payout Ratio = Dividends Paid 0.00 = Rs. 9.90 Net Income Rs. 8,065.10© 2012 Shoaib Shaikh. All rights reserved.
  13. 13. Thank You© 2012 Shoaib Shaikh. All rights reserved.

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