Bharat Coking Coal shares in focus after positive Q2 results; Stock back near IPO price

Shares of Bharat Coking Coal (BCCL) are in focus on Monday, October 26, after the company reported its second quarter results a day prior.

The Coal India-subsidiary returned to profitability during the September quarter, on both net as well as on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front compared to losses reported in the base quarter last year.

BCCL reported a profit after tax (PAT) of ₹123.7 crore in the second quarter compared to a net loss of ₹53 crore in the previous year.

Its revenue increased by 39% to ₹4,412.58 crore from ₹3,173.25 crore in the second quarter last year.

The company's offtake during the quarter increased by 10% to 8.89 MT from 8.11 MT last year. Meanwhile, its sales per tonne increased by 23% to ₹3,668 from ₹2,973 in the prior fiscal.

BCCL reported EBITDA of ₹200 crore compared to an EBITDA loss of ₹383 crore in the year-ago period, while its margins were back in the positive to 4.5% from a negative 12.1% last year.

Bharat Coking Coal returned to profitability despite a 66% drop in other income to ₹158.6 crore from ₹470.3 crore and finance costs going up by 44% to ₹48.74 crore from ₹33.84 crore last year.

The other positive that was seen during the quarter was a decline in receivables, which fell to ₹2,105 crore at the end of the September quarter, from ₹2,863 crore in March.

Shares of Bharat Coking Coal ended the previous session 1.03% lower at ₹29.88 apiece near its 52-week low of ₹28.92. The stock has fallen 8.1% in the past month and is down 11.9% in the last six months.

BCCL shares listed on the exchanges at ₹45, a nearly 96% premium from its issue price of ₹23. The stock is now down 33.6% from its listing price of ₹45 but is up 23.9% from its issue price of 23.

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