Q3 FY24 Earnings Conference Call Summary for Coal India Limited
Call Details
• Date: February 19, 2024
• Moderator: Amit Dixit (ICICI Securities)
• Key Management Present:
• Chairman: P.M. Prasad
• Directors: Mukesh Choudhary, Mukesh Agrawal
Financial Highlights
• Record Coal Production: 531.90 million tons
• Profit Before Tax (PBT): INR 31,937 crores
• Profit After Tax (PAT): INR 23,849 crores
• Revenue Growth: 5% year-over-year, totaling INR 1,04,914 crores
• Interim Dividend: INR 5.25 per share (totaling INR 20.50 for FY)
Production and Targets
• Annual Production Target: 780 million tons
• E-Auction Volumes: Target of 15% for the second half of the year
• E-Auction Premiums: Increased from 13% in January to 17% in February, with potential to reach 20%
Challenges and Strategic Insights
• Impact of Production on E-Auction Premiums: Higher coal stocks may lower demand and premiums
• Dividend Policy: Balances shareholder expectations with future capital expenditure needs
• International Coal Comparison: Indian coal has higher ash content affecting pricing
Capital Expenditure and Future Plans
• Capex Targets:
• FY '24: INR 16,500 crores
• FY '25: INR 17,500 crores
• Funding Sources: Primarily from internal accruals, with some debt for specific projects
• Investments: Ongoing in renewable energy and coal gasification
Market Dynamics
• Coal Price Stabilization: Expected to stabilize at current levels, influenced by demand from new power plants
• Domestic vs. Imported Coal: Aiming to reduce reliance on imports by targeting 175-200 million tons of substitutable coal
Operational Insights
• Beneficiated Coal Production Target: 8 million tons by FY '30
• Employee Costs: Expected to decrease, with no rise anticipated in the next two years
• Receivables Increase: From INR 13,000 crores to INR 17,000 crores due to negotiations
Conclusion
• Production Growth Outlook: Optimistic about maintaining double-digit growth in production and dispatches
• Future Projects: Ongoing land acquisition and project management for thermal power plants
The call concluded with expressions of gratitude from management and the moderator.

Conference Call Overview
• Date: November 21, 2023
• Moderator: Rohit Natarajan, Antique Stock Broking
• Key Executives: Chairman P.M. Prasad and other directors
Company Performance
• Production Target: 780 million tons for FY24
• Current Status: 12% production and 9% dispatch, affected by rainy season
• Outlook: Increased dispatch expected post-festival season
Challenges and Resolutions
• Mahanadi Coalfields Limited (MCL): Resolved land issues
• BCCL Subsidiary: Projected 11% growth
E-Auction Insights
• Volume Projection: 15% of production in the second half of the year
• Current Premiums: Average 90% over notified price
Profitability and Demand
• Sustained Profitability: Attributed to operational efficiencies, not e-auction profits
• Future Demand: Strong demand expected through 2030-2040
Production Goals
• Long-term Target: 1 billion tons by FY27
• Incremental Production: 20-25 million tons in FY24-25, 55-60 million tons in FY25-26
Capital Expenditure and Investments
• Total Capex: INR 16,500 crores for FY24
• Solar Subsidiaries: Phased approach to reach 3,000 megawatts
• First Mile Connectivity Project: INR 25,000 crores investment
Mining Operations
• Shift in Mining: Increasing focus on underground production
• Evacuation Capacity: Ongoing projects to enhance capacity and efficiency
Employee Costs and Revisions
• Projected Costs: INR 46,000 crores, lower than previous year
• Revisions Timeline: Non-executive in '26, executive in '27
Future Strategies
• Production Efficiency: Increase in non-coking and coking coal production
• FSA Transition: 11 million tons under old pricing structure
Conclusion
• Next Steps: Decision/action required within three months
• Next Meeting: Anticipated for the next quarter