Coal India Ltd. · NSE:COALINDIA
Coal India — Q3 FY21 Earnings Presentation
26 slides from Coal India's earnings presentation, Feb 11, 2021
Slide 1: Exchange filing cover letter: Presentation to Analysts
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Slide 2: Q3 & 9M FY21 Results
Q3 & 9M FY21 Results 11th February 2021
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 ▪ YTD FY21 (till January 2021) production ▪ High focus on social, environmental of 453 million tons across 352 working and health & safety initiatives mines, with ongoing projects for
Slide 5: Moving on to the next decade – 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: Moving on to the next decade – 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: Analysis of current load curve points towards higher thermal generation
Analysis of current load curve points towards higher thermal generation 1st Oct'20 3rd Dec'20 thermal hydro renewable gas nuclear thermal hydro renewable gas nuclear 140,000 140,000 120,000 120,000 100,000 100,000 80,000 80,000 60,000 60,000 40,000 40,000 20,000 20,000 0 0 0:00 1:00 2:00 3:00 4:00 5
Slide 8: Power demand continues to recover
Power demand continues to recover Daily power demand 4,500 FY20 FY21 • Daily power demand has been consistently 4,000 higher than FY20 since September 3,500 3,000 • As a result, coal based generation has grew 2,500 8.6% YoY, while total generation grew 6.7% in MUs 2,000 Q3FY21. 1,500 • As per the CE
Slide 9: Consequently, demand for coal increases
Consequently, demand for coal increases Coal Production (MT) Growth (%) Offtake (MT) Growth (%) 90 40.0 90 40.0 80 30.0 80 30.0 70 20.0 70 20.0 60 60 10.0 10.0 50 50 0.0 0.0 40 40 -10.0 -10.0 30 30 20 -20.0 20 -20.0 10 -30.0 10 -30.0 0 -40.0 0 -40.0 Aug'17 Aug'18 Aug'19 Aug'20 Aug'17 Aug'18 Aug'19 A
Slide 10: 10M FY21 operational highlights
10M FY21 operational highlights Strong performance on all fronts Production Offtake Avg. Realisation (Raw coal) (Raw coal) 453.28 million tons 462.87 million tons INR 1,425.01 per ton (451.52 million tons in 10M (473.40 million tons in 10M FY20) FY20) OBR Manpower (as on 01.10.2020) 1105.58 million
Slide 11: 9M FY21 Results
Coal India Limited SE OTE BT SUE 3) AGovanmert tea Undataing 9M FY21 Results <
Slide 12: 9M FY21 financial highlights
9M FY21 financial highlights Solid performance even during exceptional circumstances Revenue(Net) EBITDA* Profitability (PBT) INR 63,326 crores INR 13,444 crores INR 11,603 crores (INR 68,512 crores in 9M FY20) (INR 17,057 crores in 9M FY20) (INR 16,624 crores in 9M FY20) EPS EBITDA margin (on Net S
Slide 13: Consolidated statement of sales- 9M FY21
Consolidated statement of sales- 9M FY21 9M FY21 Particulars Quantity Net sales Avg. realisation (million tons) (INR crores) (INR per ton) FSA 333.51 45,844.87 1,374.61 E-Auction 65.48 9,739.89 1,487.43 Total raw coal 398.99 55,584.76 1,393.14 Washed coal (coking) 0.75 534.22 7,122.93 Washed coal (n
Slide 14: Consolidated financial performance
Consolidated financial performance Income statement Particulars 9M FY21 9M FY20 % change (in INR crore) Revenue from operations 63,325.87 68,512.11 -7.57% Other income 2518.40 4192.22 -39.93% Total income 65,844.27 72,704.33 -9.44% Cost of materials consumed 5058.07 4872.97 3.80% Purchases of Stock-
Slide 15: Consolidated financial performance
Consolidated financial performance Balance sheet Particulars 31.12.2020 31.03.2020 % change (in INR crore) Assets Non current assets Property, Plant & Equipment 35014.90 32302.35 8.40% Capital Work in Progress 10029.89 8271.09 21.26% Exploration and evaluation assets 4553.05 4443.12 2.47% Intangible
Slide 16: Consolidated financial performance
Consolidated financial performance Balance sheet Particulars 31.12.2020 31.03.2020 % change (in INR crore) Equities and liabilities Equity Equity share capital 6162.73 6162.73 --------- Other equity 29072.96 25994.19 11.84% Equity attributable to equity holders 35,235.69 32,156.92 9.57% Non-Controll
Slide 17: Committed towards all stakeholders
Committed towards all stakeholders
Slide 18: World's Largest Pure Play Coal Producer – 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 19: Railway lines for coal evacuation – Key to capacity building
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 20: 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 21: Infrastructure Building – First mile connectivity and other coal evacuation infra improvement projects
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 22: 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 23: Moving towards clean coal
Moving towards clean coal Coal gasification Coal bed methane Washeries Two projects tendered 5 surface coal gasification 12 coal washeries, (10 coking through BOO mode at projects identified at Dankuni coal and 2 non-coking coal) Raniganj and Jharia with (WB), Shilpanjal Pariyojana (WB), with total
Slide 24: ESG – Committed to continuously improve
ESG – Committed to continuously improve • Coal evacuation and FMC projects will help • Lowered fatalities substantially to 30 from 34 and • With an objective of becoming an reduce air pollution and environmental serious injuries to 80 from 90 in 2020 vis-à-vis 2019 - the efficient and modern dynamic
Slide 25: 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 26: Thank You
Thank You