कोल इि डया िलिमटेड | Coal India Limited | ||
महार कंपनी | A Maharatna Company | ||
3 त ला, कोर-2, ेिमसेस-04-एमआर, लॉट-ए एफ- | (A Govt.of India Enterprise) | ||
Regd. Office:3rd floor, Core-2 | |||
III, | |||
Premises no-04-MAR, Plot no-AF-III, Action Area-1A, | |||
ए शन ए रया-1A, यूटाउन, रजरहट, कोलकाता-700156 | |||
Newtown, Rajarhat,Kolkata-700156 | |||
फोन033-23245555,फै स-033-२३२४६५१० | |||
PHONE; 033-2324-5555, | |||
ईमेल:mviswanathan2.cil@coalindia.in | FAX; 033-23246510 | ||
वेबसाइट: www.coalindia. In | E-MAIL: mviswanathan2.cil@coalindia.in | ||
WEBSITE: www.coalindia.in | |||
CIN- L23109WB1973GOI028844 | |||
Ref.No. CIL:XI(D):4157/4156:2022: | Dated: 12.09.2022 | ||
To, | To, | ||
Listing Department, | Listing Department, | ||
Bombay Stock Exchange Limited, | National Stock Exchange of India Limited, | ||
14th Floor, P.J. Towers, Dalal Street, | Exchange Plaza, Bandra Kurla Complex, | ||
Mumbai - 400 001 | Bandra (E), Mumbai - 400 051. | ||
Scrip Code 533278 | Ref: ISIN - INE522F01014 |
Sub:- Transcript of Investors' meet held for Un-audited Financial Results for 1st quarter ended on 30th June' 2022
Dear Sir,
Further to our letter no CIL:XI(D):4157/4156:2022 dated 7th September'22, we are enclosing transcript of Investors' meet held on 8th September'2022 for Un-audited Financial Results for 1st quarter ended on 30th June' 2022 as Annexure A.
This is for your information and records as per Regulation 46 of SEBI (LoDR)' 2015.
Yours faithfully,
MAHADEVAN Digitally signed by | |
MAHADEVAN | |
VISWANATHA VISWANATHAN | |
N | Date: 2022.09.12 |
10:31:20 +05'30' |
(M. Viswanathan/एम॰िव वनाथन) Company Secretary/कंपनीसिचव & Compliance Officer/क लायंसऑ फसर
Encl: As above
Annexure-A
"Coal India Limited Q1 FY-23 Post Results Conference
Call"
September 08, 2022
MANAGEMENT: MR. PRAMOD AGRAWAL - CHAIRMAN, MD &
DIRECTOR (FINANCE).
MODERATOR: MR. RAHUL MODI - ICICI SECURITIES.
Page 1 of 19
Coal India Limited | |
September 08, 2022 | |
Moderator: | Ladies and gentlemen, good day and welcome to the Q1 FY23 Post Results Conference Call of |
Coal India Limited hosted by ICICI Securities. As a reminder, all participant lines will be in the | |
listen only mode and there will be an opportunity for you to ask questions after the presentation | |
concludes. Should you need assistance during the conference call, please signal an operator by | |
pressing "*" then "0" on your touch tone phone. Please note that this conference is being | |
recorded. I now hand the conference over to Mr. Rahul Modi from ICICI Securities. Thank you, | |
and over to you, sir. | |
Rahul Modi: | Thank you. Good day, everybody. On behalf of ICICI Securities, I welcome you all to the Q1 |
FY23 Post Results Conference Call of Coal India Limited. Today, we are pleased to host the | |
members of the senior management of the company, led by Shri Pramod Agrawal, Chairman | |
and Managing Director. Thank you, sir, for giving us time for this interaction. We will begin the | |
call with remarks from Chairman, and after which we will open the lines for Q&A. I would like | |
to hand over the floor to CMD now. Thank you, and over to you, sir. | |
Pramod Agrawal: | Thank you, Rahul and good day to everyone present. Let me first apologize for postponing this |
meeting twice, first because of my sickness; and second because of some urgent work that | |
emerged, but I'm really thankful to ICICI for organizing this meeting. I really wanted to come | |
personally to Bombay, but somehow it is not happening because of the pressures of increasing | |
production. There is demand for power coal has increased substantially, partly because the | |
demand for energy has increased and partly because the imported coal-based power plants have | |
reduced their production substantially. The generation has reduced substantially. Secondly, even | |
the CTPs, which were importing coal and producing their own power, they have now shifted to | |
the utilities and hence, the power consumption through utilities have increased where the Coal | |
India has to supply power. | |
In first quarter, we are happy to inform that we could meet the demand of the power sector and | |
we could maintain the supply to non-power as well. Because of increased production, cost per | |
tonne has reduced significantly, and because of the increased international price, we could get | |
higher prices in e-auction as well. Because all of this has contributed an increase of profitability | |
despite the fact that our cost of production has increased slightly because of the increase in price | |
of diesel and petrol and increase in price of the explosives compared to last Q1. But increased | |
production, increased off take has helped us in reducing the cost of supply, and this has helped | |
us in increasing our profitability. The company is quite sure that this year, we will be achieving | |
the target of our 700 million tonnes. And for this, we are working very hard. There are certain | |
problems in 1 or 2 companies, but we are trying to resolve it, and even then, even if it is not | |
resolved, we'll increase the production from other companies to compensate for that. And I'm | |
quite hopeful that this year will be an outstanding year for Coal India, both from a production | |
point of view, secondly from meeting the need and because the production is there, we will be | |
meeting the need of the nation and all of this will contribute to increase of profits of the company. | |
Thank you. So, now I would like to invite the questions. |
Page 2 of 19
Coal India Limited | |
September 08, 2022 | |
Moderator: | Thank you. Ladies and gentlemen we will now begin with the question-and-answer session. The |
first question is from the line of Amit Dixit from Edelweiss. Please go ahead. | |
Amit Dixit: | I have two questions, the first one relates to, essentially, the wage provisioning. We have not |
seen anything in the P&L profile and this is contrary to earlier times whenever wage provision | |
was there, it was being shown from Q3 of that particular year. But so far, we have not seen | |
anything. So, could you please throw some light on the possible quantum of increase that you | |
would provide for it? That is my first question. | |
Pramod Agrawal: | Okay. Will you ask the second question as well, then I will reply both the questions |
simultaneously. | |
Amit Dixit: | Yes, sure. The second question is essentially on e-auction volume and pricing. What we have |
seen that the blended e-auction prices in Q1 were like 4,400 almost, but the bookings in the last | |
3 months have been upwards of 8,500. So, what kind of number can we expect in terms of | |
realization in this quarter and going ahead so far in September, what kind of price you have seen, | |
has it fallen from that level and what kind of volume can we see in the e-auction for the whole | |
year. So, these are the two questions sir. | |
Pramod Agrawal: | Okay. First is wage provisioning. Last year, we have provided something like 900 crores last |
year we had provided for the wage increase. This year again we are providing Rs.150 crores per | |
month, so 1,800 crores. Now we have provided 100 crores, and we will increase it in coming | |
quarters, maybe in third quarter onward we'll increase. It will be very difficult for me to say | |
what will be the impact of the wage negotiation but, because the negotiations are still on and we | |
have not come to any agreement, but the impact, we will try to respect this. Secondly, we must | |
understand that lot many people are retiring, and this is giving us some leverage like this year, | |
again we are expecting that 12,000 to 13,000 people will retire. So, there will be increase, there | |
will be some impact, but the impact is not going to be very phenomenal. It will be something | |
which can be managed and with the price increase due, it will not have any impact on Coal | |
India's bottom line as well. | |
E-auction price last year in the first quarter was around Rs.4,340 and that increased the substance | |
sale, quantity was 20 million tonnes. I don't have a figure right now, what is the quantity we | |
have auctioned in Q2, but I presume that this trend of about 20 to 25 million tonnes will continue | |
throughout the year and we will end the year with about 80 million to 90 million tonnes of e- | |
auction coal. But this depends how the demand for the power comes up. If the demand of the | |
power increases substantially, then our ability to do the e-auction reduces to that extent. Price as | |
of now is still very high, and in certain cases, we are getting about 4,500 or even 300% of the | |
premium. So, about this range will be maintained if it does not increase further. But at least this | |
range will be maintained for e-auction price as well. |
Page 3 of 19
Coal India Limited | |
September 08, 2022 | |
Amit Dixit: | Great sir. That's very helpful. Sir, just wanted to understand 100 crores per month you are |
providing in wage provisioning, right? | |
Pramod Agrawal: | Until now, we have provided Rs.100 crores, from quarter three onwards or quarter two, let me |
see, we will increase this slightly further. It is will be very wrong for me to give any indication | |
to what will be the wage impact because the negotiations are on. And if I indicate something, it | |
will impact the net base negotiation. | |
Amit Dixit: | No, 100 crores is every month, right, not every quarter. It's every month? |
Pramod Agrawal: | Yes, every month. |
Moderator: | Thank you. The next question is from the line of Vishal Chandak from Motilal Oswal Financial |
Services. Please go ahead. | |
Vishal Chandak: | Sir, my first question was with respect to the status of the railway line of the railway projects, |
the Tori-Shivpuri doubling of the line and Jharsuguda-Sardega doubling line. So, what would | |
be the current status of the expansion, sir? | |
Pramod Agrawal: | Tori-Shivpuri line, as you know the second line was completed and the third line was even in |
progress. And next year, it should get completed, if I'm correct. Yes, Shivpur-Kathautiya will | |
get by 2024, and this line should get middle of next year, the third line will also be laid. The | |
work is on. The second question about Jharsuguda-Barpali-Sardega, the Jharsuguda-Sardega | |
line, the first line is already there it is functional. The second line, we have sanctioned it, and it | |
is likely to get completed by March 23, but there are three components in that. One is Barpali | |
and the second is there are some over bridge at Jharsuguda and the third is line. Doubling of line | |
as far as concerned will get completed next year, but this Barpali will take another two years and | |
the over bridge and the flyover will get completed somewhere in the middle of 2024. So, this is | |
our expectation. | |
Vishal Chandak: | Great. That's quite helpful, sir. Sir, my second question was with regard to the 1 billion tonne |
production target. Now that coal is back in focus globally and everywhere there is a huge demand | |
of coal, so I'm sure now there is no dearth of demand going forward from both power as well as | |
non-power sectors, so how soon can we plan to realistically approach a full year production of | |
1 billion tonnes? | |
Pramod Agrawal: | See, our target is to achieve by 24, 25, that is FY25, we should achieve the target that is given |
by the government. Earlier, it was 23, 24, but as you know that we have lost two years because | |
of COVID, et cetera and the demand shortage. This year, I am quite hopeful of achieving the | |
target of 700, but to achieve target by FY25, we need to produce about 840 next year and then | |
increase it 1 billion the year after. I feel that may not be very realistic, realistically speaking |
Page 4 of 19
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Coal India Limited published this content on 12 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2022 06:29:04 UTC.