Coal India Ltd. · NSE:COALINDIA
Coal India — 9M FY22 Earnings Presentation
54 slides from Coal India's earnings presentation, Feb 17, 2022
Slide 1: Exchange cover letter: revised conference call invite
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Slide 2: Conference Call
C Conference Call Coal India Limited Conference call to discuss results for 3QFY22 Day, Date, Time Thursday, 17th February 2022, 4:30 PM IST Represented by: Shri Pramod Agrawal – Chairman & MD Diamond Pass Link Universal Dial In: +91 22 6280 1149/ +91 22 7115 8050 International Toll Free Singapore 8
Slide 3: Committed to fulfil energy aspirations of the Nation
.…Committed to fulfil energy aspirations of the Nation W www.coalindia.in f www.facebook.com/coalindiaHQ 9M 2021-22 twitter.com/CoalIndiaHQ 1
Slide 4: Coal India – A successful past, a brighter future
Coal India – A successful past, a brighter future 1975 2021 Nationalized coal mines under Coal Mines Largest pure play coal producer in the world Authority Ltd. re-organised as Coal India Limited. ‘Maharatna’ Coal Production ~ 79 Mt FY21 coal production 596 Mt Peak Coal Production of 606
Slide 5: Key company highlights
Key company highlights World’s Largest Pure Play Coal Producer Organizational Commitment to Sustainable FY21 production of 596 million tons & 9M of Development FY22 production of 414 million tons across High focus on social, environmental and 345 working mines. Ongoing projects to health & safet
Slide 6: Key company highlights
Key company highlights Highest ever Coal production of 414 MT was achieved during 9M FY22 with a growth of 5.3% against same period last year Coal offtake was also at a record high of 482 MT during 9M FY22 with a hopping growth of 17.6% against same period last year Liquidated a record 67 MT of coal
Slide 7: EC, FC, Land & PR
EC, FC, Land & PR Environment Clearance (EC) • In FY21 EC for 31 mining projects and two washeries with incremental capacity of 27.8 MTY and 3 MTY respectively & in 9M FY22, 13 no. of proposals with incremental EC capacity of 12.51 MTY has been secured Forest Clearance (FC) • In FY21 Stage-II FC
Slide 8: Why coal continues to be key in India's growth story
Why coal continues to be key in India’s growth story Considering two scenarios – power demand growth at 6%/8% from FY22 onwards – results in estimated all-India total coal demand reaching 1,250 mtpa /1,500 mtpa by FY30. Even after considering growth in RE capacity from 123GW in FY19 to 450GW in FY30
Slide 9: Why coal continues to be key in India's growth story
Why coal continues to be key in India’s growth story As it can be seen from a typical load curve in India, peak demand is post 5 pm which supports our argument that coal based power is integral to cater to base load till affordable storage comes in a major scale. 7
Slide 10: Coal-based power generation is becoming cleaner
Coal-based power generation is becoming cleaner Advanced Ultra- Carbon capture and Subcritical (30% Supercritical (38-40% Ultra-supercritical supercritical (45-50% storage – the next efficiency) efficiency) (40-45% efficiency) efficiency) frontier? Up to 21% CO2 reduction Up to 33% CO2 reduction Up
Slide 11: Power demand makes a strong comeback
(%) 30 35 40 45 55 60 65 70 50 Apr-18 65 May-18 64 PEAK DEMAND (MW) Jun-18 59 Jul-18 55 Aug-18 56 Sep-18 61 Oct-18 65 0 50000 150000 200000 250000 100000 Nov-18 62 Dec-18 60 Jan-19 61 Feb-19 61 Mar-19 63 Apr-19 65 May-19 63 Jun-19 62 Jul-19 56 Aug-19 51 Sep-19 51 Oct-19 49 Nov-19 52 Dec-19 55 Jan-20
Slide 12: Consequently, demand for coal increased
Consequently, demand for coal increased Production (mn tons) Growth YoY (%) Offtake (mn tons) Growth YoY (%) 90 40% 70 50% 80 30% 60 40% 70 30% 20% 50 60 20% 50 10% 40 10% 40 0% 30 0% 30 -10% 20 -10% 20 10 -20% 10 -20% 0 -30% 0 -30% Feb-21 Apr-20 Apr-19 Feb-20 Apr-20 Feb-21 Apr-21 Apr-19 Feb-20 Apr-
Slide 13: World's Largest Pure Play Coal Producer
World’s Largest Pure Play Coal Producer – Committed for Energy Security of India Largest Pure Play Coal Producer Globally, Slated for Further Growth Non-coking Coking 607 602 596 700 554 567 539 600 494 34 46 414 452 462 33 39 393 435 55 500 54 29 50 26 44 49 400 43 392 408 413 444 485 499 534 573 5
Slide 14: Railway lines for coal evacuation
Railway lines for coal evacuation – Key to capacity building • In order to have a seamless evacuation system for the projected production, an action plan to enhance and strengthen the infrastructure of coal evacuation for existing, ongoing and future projects of subsidiary companies is in place. Rai
Slide 15: Infrastructure Building – First mile connectivity
Infrastructure Building – First mile connectivity and other coal evacuation infra improvement projects Coal evacuation infra projects First Mile Connectivity Projects • 7 railway lines – estimated • CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mil
Slide 16: Quality Control
Quality Control As per Third Party Sampling results in terms of quantity sampled and analysed, Grade conformity during the period from Apr’20 to Mar’21 was 63% as compared to 59% for the same period last year April‘19 to Mar’20. As per Third Party Sampling results in terms of quantity sampled an
Slide 17: Import Substitution
Import Substitution Under the backdrop of ‘Aatma nirbhar Bharat’ mandate to promote usage of domestic coal in the country, it has been observed that import of coal in India has reduced substantially. In FY 21-22 , import of coal by domestic coal based power sector, for blending purpose, has been
Slide 18: Cost control measures
Cost control measures • Attrition of manpower: 5% reduction in manpower annually for the next 5-10 years (FY21 base of 259016 employees). • First mile connectivity & infrastructure creation to reduce costs. • Emphasis on digitization of mines for increasing efficiency in overall capacity utilization
Slide 19: Cost Control– Closure of Unviable Mines
Cost Control– Closure of Unviable Mines Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Coal volumes OC (million tons) 426 459 505 523 537 576 572 570 UG (million tons) 36 35 34 31 31 30 30 26 Manpower OC ('000s) 147 147 147 144 155 157 155 150 UG ('000s) 200 186 176 166 144 128 117 109 Manpower
Slide 20: Moving towards clean coal
Moving towards clean coal Coal Coal bed gasification Washeries methane 5 surface coal gasification Tenders floated for 3 projects for projects identified at CBM Development through CBMD (Coalbed Methane Developer) in: 13 coal washeries, (11 coking coal Shilpanjal Pariyojana (WB), Jharia CBM Block-I
Slide 21: Diversification and foray into renewables
Diversification and foray into renewables Solar generation Aluminium Value Chain Solar cells manufacturing Aim to set up 3GW capacity by FY24 Third party feasibility studies Third party feasibility studies completed completed Participated Participatedand andwon won100MW 100MWat Single window clearan
Slide 22: Diversification Solar Power Generation
Diversification Solar Power Generation A wholly owned subsidiary namely ‘CIL Navikarniya Urja Limited’ has already been established to venture into new business area of New and Renewable Energy (Non-Conventional) segment including Solar, Wind, Small Hydro, Biomass, Geo-Thermal, Hydrogen, Tidal, et
Slide 23: Maximising shareholder value and returns
Maximising shareholder value and returns Dividend Payout ratio 25 146% 160% 133% CIL intends to payout maximum dividend post capex 140% out of the cash profits 20 120% 78% • CIL is regularly paying considerable dividend to its 15 100% 44% shareholders. 80% • CIL intends to pay free cash flow after c
Slide 24: Coal India's commitment on carbon emission and climate change
Coal India’s commitment on carbon emission and climate change Despite absolute growth in India’s demand for coal as per the IEA, Coal India is committed to support India’s journey to achieve its Intended Nationally Determined Contributions (INDCs) by 2030 and utilize the opportunity to devise our ow
Slide 25: Carbon emission and climate change – Coal India's objectives
Carbon emission and climate change – Coal India’s objectives Reduce emissions in the most cost Support and contribute towards India’s effective manner while ensuring India’s INDCs to reduce emissions energy security Expedite move towards better, Continue to responsibly play environmentally-friendlie
Slide 26: How CIL aims to move towards a 'Net Zero Emission' company
Carbon emission and climate change – How CIL aims to contribute and move towards a ‘Net Zero Emission’ company Cleaner coal Maximising Clean coal Better quality Efficient Emission Renewable Biodiversity production OBR to sand mine water technologies coal equipment reduction generation commitments pr
Slide 27: Sustainable Development Initiatives
Sustainable Development Initiatives Mechanised evacuation of coal from the pithead to the Conversion of overburden to sand in WCL dispatch point Ground mounted solar panels at MCL 25
Slide 28: 9M & Q3 FY22 Results
9M & Q3 FY22 Results Jhanjra park developed by ECL 26
Slide 29: 9M FY22 Operational Highlights
9M FY 22 Operational Highlights Strong performance on all fronts Scripting a new record, CIL achieved highest ever Coal Production & Offtake during 9M FY22 . Production Offtake Avg. Realisation (Raw coal) (Raw coal) 414 million tons 482 million tons INR 1,467 per ton (393 million tons in 9M FY21) (4
Slide 30: Q3 FY22 Financial Highlights
Q3 FY 22 Financial Highlights Solid performance even during exceptional circumstances Revenue (Net) EBITDA* PBT INR 28,434 crores INR 7,049 crores INR 6,302 crores (INR 23,686 crores in Q3 FY21) (INR 5,529 crores in Q3 FY21) (INR 4,742 crores in Q3 FY21) EPS EBITDA margin Capex INR 7.40 per share 27
Slide 31: 9M FY22 Financial Highlights
9M FY 22 Financial Highlights Solid performance even during exceptional circumstances Revenue (Net) EBITDA* PBT INR 77,007 crores INR 16,769 crores INR 14,281 crores (INR 63,326 crores in 9M FY21) (INR 13,444 crores in 9M FY21) (INR 11,603 crores in 9M FY21) EPS EBITDA margin Capex INR 17.31 per sha
Slide 32: Consolidated statement of sales
Consolidated statement of sales 9M FY 22 9M FY 21 Avg. Quantity Avg. Quantity Net sales realisation (million Net sales realisation Particulars (million (INR crores) (INR per tons) (INR crores) (INR per tons) ton) ton) FSA 390.09 53885.29 1381.36 333.51 45844.87 1374.61 E-Auction 83.15 14093.92 1694.
Slide 33: Consolidated Financial Performance
Consolidated Financial Performance Statement of Profit & Loss Particulars 9M FY 22 9M FY 21 % change (in INR crore) Revenue from operations 77006.73 63325.87 21.60% Other income 2115.58 2518.40 -16.00% Total income 79122.31 65844.27 20.17% Cost of materials consumed 6111.36 5058.07 20.82% Purchases
Slide 34: Consolidated Financial Performance – Balance Sheet
Consolidated Financial Performance Balance Sheet Particulars As at 31.12.2021 As at 31.03.2021 % change (in INR crore) Assets Non current assets Property, Plant & Equipment 39332.15 37753.65 4.18% Capital Work in Progress 12993.01 10403.66 24.89% Exploration and Evaluation assets 4053.55 4605.81 -11
Slide 35: Consolidated Financial Performance – Balance Sheet
Consolidated Financial Performance Balance sheet Particulars As at 31.12.2021 As at 31.03.2021 % change (in INR crore) Equities and liabilities Equity Equity share capital 6162.73 6162.73 -- Other equity 33278.82 30354.64 9.63% Equity attributable to equity holders 39441.55 36517.37 8.01% Non-Contro
Slide 36: Peek into our ESG initiatives
Peek into our ESG initiatives Govardhan Eco-Park developed on an old over burden dump of Bera Colliery, Bastacolla Area by BCCL 34
Slide 37: ESG – Committed to continuously improve
ESG – Committed to continuously improve Environment initiatives Social initiatives Governance initiatives • Last year in 2021, total injuries (fatalities & serious • With an objective of becoming an • Coal evacuation and FMC projects will injuries) due to mine accidents reduced to 90 from 110 (in 20
Slide 38: Environmental highlights
Environmental highlights 2,500 Lakh KL discharged mine 2,500 Lakh water has KL been planned tomine discharged be supplied water for has been community planned to bein use FY22 for supplied community use in FY22 Out of discharged Irrigated 726 CIL is developing 4397 Lakh KL, 79.5% villages with 10.67
Slide 39: Social and CSR initiatives
Social and CSR initiatives Social highlights CSR highlights 19535 2021 Provided 128 Slice Small holder Poultry Provided equipment Construction of CT Scan and 3.0 M project by NCL in for treatment of Natya Mandap near Tesla MRI machines Singrauli, MP to neurological Maa Hingula Temple, to Chattisgarh
Slide 40: Committed to a cleaner environment
Committed to a cleaner environment Production of Coal by surface miners (mt) Rail/Road share to transport coal (mt) Rail Road Total Production by Surface Miner Total production from Open cast Mines 369 400 350 347 576 572 570 350 306 600 300 246 500 250 400 281 269 280 200 124 115 300 109 150 93 77
Slide 41: Emissions (Scope-1 & Scope-2) in tCO2
Emissions (Scope-1 & Scope -2) in tCO2 Emissions (Scope-1 & Scope -2) in tCO2 • Our GHG emissions arise mainly from the fuel 3845529 3701252 3737747 combustion in our processes and owned vehicles. • Reducing energy consumption at mines also helps us in reducing Green House Gas (GHG) emissions 116272
Slide 42: Biodiversity management and Occupational health & safety
Biodiversity management and Occupational health & safety Plantation (within mine leasehold) in Ha Plantation in Ha 821.52 733.43 812.98 844.31 661.20 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 During the last five years (2016-17 to 2020-21), CIL has planted 94.19 Lakh no. of saplings o
Slide 43: Corporate Social Responsibility
Corporate Social Responsibility CIL and subsidiaries have been able to utilize Rs. 345.62 crores under CSR during 9M FY 21-22. A total of Rs. 269 cr. have been spent under CSR on COVID-19 related projects/activities. This is 48.6% of the total CSR expenditure of FY 20-21. Second phase of Thalassemia
Slide 44: Women Empowerment
Women Empowerment NCL donated a ‘Flour mill’ to a women’s self-help group enabling them to become self sustainable. This flour mill at Khajura Tola under Birkuniya Panchayat in Madhya Pradesh, will benefit and become a source of livelihood for 11 women who are part of this self help group. CCL s
Slide 45: Initiatives to mitigate Covid-19
Initiatives to mitigate Covid-19 CIL had contributed Rs. 221 crores to PM-CARES fund for supporting COVID-19 relief measures. In addition, Rs. 90 crores in total have been contributed to the disaster management authorities/relief funds of West Bengal, Maharashtra, Chattisgarh, Madhya Pradesh and
Slide 46: Initiatives to mitigate Covid-19
Initiatives to mitigate Covid-19 ODISHA COVID HOSPITAL MCL is funding Level 3 Dedicated COVID Hospital (DCH) at Bhubaneswar. Initially started with 525 beds, the hospital now has a capacity of 1250 beds. In addition, 150 bedded hospital has been set up at Talcher. The total financial support for t
Slide 47: Initiatives to mitigate Covid-19
Initiatives to mitigate Covid-19 Under new CSR initiative NCL handed over a cheque of Rs. 5 Crores to Govt. of Uttar Pradesh for purchase of 50 ambulances to fight COVID-19 in Uttar Pradesh. ECL is setting up 200 bedded COVID hospital at Hasdiha, Godda, Jharkhand and has sanctioned Rs. 6.40 cr.
Slide 48: Initiatives to mitigate Covid-19 (2nd Wave)
Initiatives to mitigate Covid-19 (2nd Wave) 111 Ice Lined Procurement Refrigerators, and Distribution of 121 Deep Freezers, Oxygen Concentrators to 1 Walk – In Freezer Medical Aid Centres in 2 refrigerated Bihar and Jharkhand for . trucks have been needy COVID patients. provided. As a pa
Slide 49: Environmental highlights
Environmental highlights CIL undertook extensive plantation along avenues, on OB dumps, around mines & residential colonies to maintain the ecological balance in & around its operations. CIL (HQ) along with its Subsidiaries celebrated Vriksharopan Abhiyaan (VA)-2021 on 19.08.2021 in which more t
Slide 50: RO Plant installations for nearby villages
CL has installed an RO Plant of capacity 10,000 LPH at Patansaongi village benefitting 14 villages nearby. Bottling plant has also been installed and packaged in the brand name "COAL NEER". ECL has installed an RO Plant of Capacity 5000 LPH at Satgram area which will be beneficial to near by village
Slide 51: MCL organic farming and WCL pisciculture initiatives
MCL is promoting organic farming ‘Aahaar Mandal’ among rural households wherein 200 SC/ST farmers of 10 villages with 2 Aahaar Mandal sites in each village will be the direct beneficiaries. WCL has converted a local pond into a pisciculture centre for the fishing community of Nanda village. Fish
Slide 52: NCL mushroom farming training and MCL seed project
NCL :Started a training program in oyster mushroom farming and processing and will train 20 local villagers and 20 students of ITI Waidhan in mushroom farming, post harvest management, storage and its marketing in association with NCL-IIT (BHU) incubation centre. MCL has come up with a project ‘
Slide 53: Skill Development
Skill Development CIL signed MoU with CIPET under CSR for training upto 3000 youth. Similar programme already completed for training of 2000 youth. CCL inaugurated the “Mahatma Gandhi Skill Development Kendra” to provide training in computer and nursing to over 200 local young men and women. M
Slide 54: Thank You
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