Ratio Analysis of Coal India

1. FINANACIAL STATEMENTS ANALYSIS
COAL INDIA LIMITED
Presenter :
Shaikh Shoaib MFM
Shabbir Nizammuddin MFM
Mohammed Arif MFM
Mohammed Shakil MFM
Shaikh Kauser MFM
© 2012 Shoaib Shaikh. All rights reserved.

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 India's 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. 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 India's 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 world's largest coal miner
with revenue exceeding Rs.624.15
billion (FY 2012).
© 2012 Shoaib Shaikh. All rights reserved.

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. 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. 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. 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. 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. 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. 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. 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. 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. Thank You
© 2012 Shoaib Shaikh. All rights reserved.