152.5% Dividend, 5.32% Yield: Maharatna Coal India To Reward Investors, Record Date Fixed; Q3 Preview Here!

The largest government-backed coal producer, Coal India will be eyed on Monday for its Q3 results and interim dividend recommendation. The Maharatna company is expected to report double-digit growth across verticals on a year-on-year basis. The company has already fixed a record date to determine eligible shareholders for its upcoming dividend. Coal India has one of the highest dividend yields among the PSU stocks.

Coal India Share Price:

Ahead of the earnings, CIL's share price ended at Rs 455.70 apiece down by 0.8% on BSE with a market cap of Rs 2,80,835.53 crore on February 9th. The correction in stock price came after CIL's back-to-back new record hits.

CIL shares are currently trading higher by 119.40% from its 52-week low of Rs 207.70 apiece, making it a multi-bagger PSU stock. Also, the stock was near its 52-week high of Rs 468.50 apiece despite the latest hiccup in performance.

Coal India 2nd Interim Dividend:

Coal India has one of the highest dividend yields in the PSU stocks and is also among the large-caps on the Indian market. At the current market price, CIL's dividend yield is at 5.32%.

The board of directors at Coal India is scheduled to meet on February 12. On this day, the board will consider and declare payment of the 2nd Interim Dividend for FY 2023-24, if any.

As per the regulatory filing, CIL has fixed Tuesday, 20th Feb'24 as the 'Record Date' for payment of the 2nd Interim Dividend on Equity Shares for Financial Year 2023-24, if declared by the Board. This is also the ex-dividend date.

Earlier, the company paid its first interim dividend of 152.5% amounting to Rs 15.25 per share for FY24. Meanwhile, in the previous financial year 2022-23, Coal India paid up to 242.50% dividend aggregating to Rs 24.25 per share.

Coal India Q3 Results Preview:

Earlier, this month, CIL announced that with increased production and maximized supplies through all modes of despatch, CIL's offtake to power plants of the country rose to 454 mts during April and December FY 2024. This is 8 mts higher than the committed quantity of 446 mts of the period. Compared to 433 mts of April-December last year the increase is 21 mts with around 5% growth.

Further, it said, with all the CIL's producing arms posting positive growth, the public sector coal miner produced 532 mts of coal at the end of the nine months FY 2024 logging 11 % year-on-year growth. Production in volume terms rose sharply by 53 mts over 479 mts of April-December FY 2023. On a progressive basis, CIL has sustained double-digit growth since July 2023.

Also, with the appetite for coal remaining firm CIL's total off-take rose to 552 mts with a healthy growth of 8.7% till ending December FY 2024. This reflects 44 mts higher supply compared to 508 mts of last year's similar period. Five of CIL's subsidiaries have checked in double-digit growth.

Coal stocks at domestic coal-based power plants have surged to 32 mts ending December FY 2024, about 5.6% more on the comparative basis of last year, it said.

For Q3FY24, Axis Securities in its preview note said, "CIL Coal off-take grew by 10% QoQ, YTD off-take is at 552MT up 9% YoY. FYTD till Nov'23 e-auction premium stood at ~90%. In Q3FY23 premium was at an elevated level of 241%. The drop in premium is however more than offset by an increase in off-take volumes and higher FSA prices YoY. We project a 22%/11% YoY/QoQ increase in revenue." It also added, "We expect Adj EBITDA (excl OBR) to grow by 17%/6% YoY/QoQ led by higher topline."

That being said, Axis Securities expects CIL to report revenue of Rs 36,302 crore, up by 10.8% QoQ and 21.7% YoY. EBITDA is expected at Rs 8,472 crore up by 4.1% QoQ and 16.4% YoY, while adjusted EBITDA is seen at Rs 9,400 crore with higher growth of 5.7% QoQ and 17.3% YoY. PAT is factored at Rs 6,706 crore, down by 1.4% sequentially but up by 11% YoY.

In Q2FY24, Coal India posted a net sales of Rs 29,978.01 crore, higher from Rs 27,538.59 crore in the same quarter a year ago. While PAT stood at Rs 6,813.50 crore, also up from Rs 6,043.99 crore in Q2 of FY23.