Coal India Ltd. · NSE:COALINDIA
Coal India — H1 FY21 Earnings Presentation
25 slides from Coal India's earnings presentation, Nov 12, 2020
Slide 1: Exchange filing cover letter
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Slide 2: Q2 & H1 FY21 Results
Q2 & H1 FY21 Results 11 November 2020
Slide 3: Coal India – A successful past, a brighter future
Coal India – A successful past, a brighter future 1975 2020 • 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 • FY20 coal production 602 Mt FY20 coal production at 602mt
Slide 4: Key company highlights
Key company highlights Organizational Commitment to World’s Largest Pure Play Coal Producer Sustainable Development YTDFY21 (till October 2020) production High focus on social, environmental of 283 million tons across 352 working and health & safety initiatives mines, with ongoing projects for f
Slide 5: Why coal continues to be key in India's growth story
Moving on to the next decade – 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
Slide 6: Why coal continues to be key in India's growth story
Moving on to the next decade – 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 5pm which supports our argument that coal based power is integral to cater to base load till affordable storage comes in a major scale. It can
Slide 7: Power demand makes a strong comeback
Power demand makes a strong comeback Daily power demand 4,500 FY20 FY21 4,000 3,500 • Daily power demand has been consistently 3,000 higher than FY20 since September 2,500 MUs 2,000 • As a result, coal based generation has grown 1,500 9.5%/14.6% YoY in September/October 1,000 • This has been a stron
Slide 8: Consequently, demand for coal increases
Consequently, demand for coal increases Production (mn tons) Growth YoY (%) Offtake (mn tons) Growth YoY (%) 90 40% 70 40% 80 30% 60 30% 70 20% 50 20% 60 mn tons 10% mn tons 50 40 10% 40 0% 30 0% 30 -10% 20 -10% 20 10 -20% 10 -20% 0 Dec-19 -30% 0 -30% Oct-17 Apr-17 Dec-17 Apr-18 Dec-18 Apr-19 Apr-20
Slide 9: H1 FY21 Results
Coal India Limited SE OTE BT SUE 3) AGovanmert tea Undataing H1FY21 Results ~
Slide 10: H1 FY21 operational highlights
H1 FY21 operational highlights Strong performance on all fronts Production Offtake Avg. Realisation (Raw coal) (Raw coal) 236.02 million tons 254.38 million tons INR 1,435.42 per ton (240.93 million tons in H1 FY20) (275.93 million tons in H1 FY20) OBR Manpower (as on 01.10.2020) 601.24 million CuM.
Slide 11: H1 FY21 financial highlights
H1 FY21 financial highlights Solid performance even during exceptional circumstances Revenue(Net) EBITDA* Profitability (PBT) INR 39,640 crores INR 7,915 crores INR 6,861 crores (INR 45,322 crores in H1 FY20) (INR 11,433 crores in H1 FY20) (INR 11,288 crores in H1 FY20) EPS EBITDA margin (on Net Sal
Slide 12: Consolidated statement of sales- Q1/H1 FY21
Consolidated statement of sales- Q1/H1 FY21 Q1 FY21 H1 FY21 Particulars Quantity Net sales Avg. Quantity Net sales Avg. (million (INR crores) realisation (million (INR crores) realisation tons) (INR per tons) (INR per ton) ton) FSA 102.23 13,896.18 1,359.50 210.38 29,165.34 1,386.32 E-Auction 15.87
Slide 13: Consolidated financial performance – Income statement
Consolidated financial performance Income statement Particulars H1 FY21 H1 FY20 % change (in INR crore) Revenue from operations 39,639.84 45,321.62 -12.54% Other income 1,869.81 2,780.52 -32.75% Total income 41509.65 48102.14 -13.71% Cost of materials consumed 3,155.05 3,056.63 3.22% Purchases of St
Slide 14: Consolidated financial performance – Balance sheet
Consolidated financial performance Balance sheet Particulars 30.09.2020 31.03.2020 % change (in INR crore) Assets Non current assets Property, Plant & Equipment 34,035.60 32,302.35 5.37% Capital Work in Progress 9,429.67 8,271.09 14.01% Exploration and evaluation assets 4,680.34 4,443.12 5.34% Intan
Slide 15: Consolidated financial performance – Balance sheet
Consolidated financial performance Balance sheet Particulars 30.09.2020 31.03.2020 % change (in INR crore) Equities and liabilities Equity Equity share capital 6,162.73 6,162.73 --------- Other equity 30,920.81 25,994.19 18.95% Equity attributable to equity holders 37,083.54 32,156.92 15.32% Non-Con
Slide 16: Committed towards all stakeholders
Committed towards all stakeholders
Slide 17: Preparing to build 1 bn ton capacity
World’s Largest Pure Play Coal Producer – Preparing to build 1 bn ton capacity Largest Pure Play Coal Producer Globally, Slated for Further Growth 700 607 602* 600 554 567 539 34 46 494 33 462 54 55 500 435 452 50 44 49 400 43 392 408 413 444 485 499 534 573 556 300 FY12 FY13 FY14 FY15 FY16 FY17 FY1
Slide 18: Railway lines for coal evacuation – Key to capacity building
Railway lines for coal evacuation – Key to capacity building CIL has adopted an approach to eliminate road transportation of coal from 35 mines with capacity of 4 Mty and above in the Ist Phase.14 Projects have been identified in the IInd Phase These entailed capacity creations of mechanized conveyo
Slide 19: Cost control measures
Cost control measures • Natural attrition of manpower: 5% reduction in manpower annually for the next 5-10 years (FY 20 base of 272445 employees). • First mile connectivity & infrastructure creation to reduce costs • Closure of unviable mines: 158 underground mines employ 43% of the workforce wherea
Slide 20: Infrastructure Building – First mile connectivity
Infrastructure Building – First mile connectivity and other coal evacuation infra improvement projects First Mile Connectivity Projects Coal evacuation infra projects CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects . 1
Slide 21: Cost Control & Infrastructure Building – Mine closure
Cost Control & Infrastructure Building – Mine closure Particulars FY14 FY15 FY16 FY17 FY18 FY19 FY20 Coal volumes OC (million tons) 426 459 505 523 537 576 572 UG (million tons) 36 35 34 31 31 30 30 Manpower OC ('000s) 147 147 147 144 155 157 155 UG ('000s) 200 186 176 166 144 128 117 Manpower produ
Slide 22: Moving towards clean coal
Moving towards clean coal Coal gasification Coal bed methane Washeries 4 surface coal gasification Two projects tendered through 12 coal washeries, (10 coking projects identified at Shilpanjal BOO mode at Raniganj and coal and 2 non-coking coal) with Pariyojana (WB), Project Jharia with capacity tot
Slide 23: ESG – Committed to continuously improve
ESG – Committed to continuously improve • Coal evacuation and FMC projects will • Lowered fatalities substantially to 22 in • With an objective of becoming an help reduce air pollution and YTDFY21 vs from 32 YoY. efficient and modern dynamic environmental impact. • Over Rs3000cr cumulative spend on
Slide 24: Maximising shareholder value and returns
Maximising shareholder value and returns Dividend (Rs) Payout ratio (%) 30 146% 160% CIL intends to payout maximum dividend post capex 133% 140% out of the cash profits 25 121% 120% • In the past dividend payout ratio was fluctuating 20 95% • Transparent payout policy is being put in place 100% • CI
Slide 25: Thank You
ited ala ghtsar fafies Coal India