Bharat Coking Coal shares rise 6% as Q2 profit returns

The short version

• Bharat Coking Coal shares gained 6.3% to Rs 31.62 after the company returned to profit in the September quarter.
• Revenue rose 39% to Rs 4,412.58 crore, while EBITDA turned positive at Rs 200 crore.
• Receivables fell to Rs 2,105 crore, although the stock remained below its Rs 45 listing price.

Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, reported a return to profitability for the September quarter, with higher revenue and improved operating margins. Its shares rose 6.3% to Rs 31.62 in Monday's trading session following the results.

Net profit reached Rs 123.7 crore, compared with a loss of Rs 53 crore in the same quarter last year. Revenue increased by 39%, while earnings before interest, tax, depreciation and amortisation (EBITDA) improved from a loss to a profit. The results also showed a reduction in outstanding receivables, which had fallen by the end of September.

Despite the latest rise, BCCL shares remained below their listing price of Rs 45. The stock had listed at a premium of nearly 96% over its issue price of Rs 23, but subsequent losses had erased much of those initial gains.

Bharat Coking Coal Q2 results: revenue and profit improve

BCCL's September quarter performance improved across revenue, net profit and operating earnings. Revenue increased to Rs 4,412.58 crore from Rs 3,173.25 crore in the year ago quarter. This was a rise of approximately Rs 1,239 crore, or 39%.

The company reported a net profit of Rs 123.7 crore against a net loss of Rs 53 crore a year earlier. Its EBITDA also moved into positive territory at Rs 200 crore, compared with an EBITDA loss of Rs 383 crore in the corresponding quarter of the previous financial year.

Financial metric	September quarter	Year ago quarter
Revenue	Rs 4,412.58 crore	Rs 3,173.25 crore
Net profit or loss	Rs 123.7 crore profit	Rs 53 crore loss
EBITDA	Rs 200 crore	Rs 383 crore loss
EBITDA margin	4.5%	Negative 12.1%
Offtake	8.89 million tonnes	8.11 million tonnes
Sales per tonne	Rs 3,668	Rs 2,973

The improvement in EBITDA and margins indicates that BCCL's operating performance was stronger than in the year ago quarter. Its EBITDA margin moved to 4.5% from negative 12.1%. However, the margin remained relatively modest at 4.5%, making future operating performance worth tracking alongside revenue growth.

Higher coal sales supported revenue growth

BCCL's operating performance also benefited from an increase in coal offtake and sales per tonne. Offtake rose 10% to 8.89 million tonnes from 8.11 million tonnes in the year ago quarter. Meanwhile, sales per tonne increased 23% to Rs 3,668 from Rs 2,973.

The increase in both volume and sales per tonne helped lift revenue during the quarter. Revenue growth was faster than the increase in offtake, indicating that the rise in sales per tonne was an important part of the improvement. However, the figures provided do not separately explain how much of the increase came from pricing, product mix or other factors.

For a coal producer, sales volume and realisation per tonne are useful measures to track together. Higher volumes can support revenue, while a higher selling price per tonne can increase revenue even when volume growth is more limited. BCCL recorded an improvement in both measures during the September quarter.

EBITDA margins return to positive territory

BCCL's EBITDA increased to Rs 200 crore from a loss of Rs 383 crore in the year ago quarter. The corresponding margin improved to 4.5% from negative 12.1%.

EBITDA measures earnings before interest, tax, depreciation and amortisation. It is commonly used to assess operating performance before financing costs and certain accounting expenses. A positive EBITDA means the business generated earnings at this level before those items, although it does not by itself establish the company's final cash flow or overall financial health.

The improvement came despite pressure from other income and finance costs. Other income fell 66% to Rs 158.6 crore from Rs 470.3 crore. Finance costs increased 44% to Rs 48.74 crore from Rs 33.84 crore.

These figures matter because the return to profit occurred even as other income decreased and finance costs rose. The operating improvement was therefore an important part of the quarter's result. Future results will show whether BCCL can maintain positive EBITDA and improve its margins further.

Receivables fall by Rs 758 crore

BCCL's outstanding receivables declined to Rs 2,105 crore at the end of the September quarter from Rs 2,863 crore in March. That is a reduction of Rs 758 crore, or about 26.5%.

Receivables are amounts owed to a business by its customers or other parties. A fall in receivables can reduce the amount of money tied up in unpaid bills, although the figures alone do not establish when the company collected the money or how much its cash flow improved.

For BCCL, the lower balance is a positive development to monitor alongside the return to profitability. The next set of results can help show whether receivables continue to fall and whether the improvement is accompanied by stronger cash generation. The supplied figures do not include a cash flow statement, so the exact impact on cash generation cannot be determined.

BCCL share price remains below its IPO listing level

Despite the rise following its September quarter results, BCCL shares remained well below their initial listing price. The stock gained 6.3% to Rs 31.62, close to its reported 52 week low of Rs 28.92. It had fallen 8.1% over the previous month and 11.9% over the previous six months.

The share price history shows a sharp difference between the stock's initial listing performance and its subsequent movement.

Share price measure	Value
IPO issue price	Rs 23
Listing price	Rs 45
Price after the reported rise	Rs 31.62
Reported 52 week low	Rs 28.92
Change from listing price	Down 33.6%
Change from issue price	Up 23.9%
Change over one month	Down 8.1%
Change over six months	Down 11.9%

BCCL listed at Rs 45, a premium of nearly 96% over its issue price of Rs 23. At Rs 31.62, the stock was 33.6% below its listing price, but it remained 23.9% above the IPO issue price.

These comparisons use different starting points. The listing price reflects the stock's value when trading began, while the issue price is the amount paid by investors in the IPO. Neither measure alone explains the stock's future performance.

The movement also provides context for the recent gain. A single session's rise does not erase the declines recorded over the preceding month or six months. Investors tracking the share price will need to distinguish between the immediate reaction to the quarterly results and the stock's longer price history.

For context on other IPO trading patterns, WeloMoney has covered the Steamhouse India IPO debut and the Prasol Chemicals IPO listing performance. Those companies have different businesses, so their share price movements should not be treated as directly comparable with BCCL.

What investors should watch

BCCL's next quarterly results will help establish whether the September quarter improvement can continue. The latest figures provide several areas to monitor:

• Revenue growth, including changes in coal offtake and sales per tonne.
• EBITDA and margins, which turned positive at Rs 200 crore and 4.5%, respectively.
• Receivables, which fell from Rs 2,863 crore in March to Rs 2,105 crore in September.
• Share price performance relative to the Rs 45 listing price and the reported 52 week low of Rs 28.92.

A sustained improvement in operating earnings would need to be assessed over more than one quarter. Changes in coal sales, realisations, costs and receivables will help explain whether the latest performance continues. The supplied information does not include forward guidance, so it does not establish what BCCL expects for the next quarter.

About Bharat Coking Coal

Bharat Coking Coal Limited is a subsidiary of Coal India. Its reported September quarter results showed higher revenue, a return to net profit and positive EBITDA margins. The company also recorded higher coal offtake and sales per tonne, while its outstanding receivables fell between March and September.

The next results will provide further evidence of whether these improvements continue. Revenue and coal sales will help show the pace of business activity, while EBITDA margins and receivables will indicate whether operating performance and collection trends remain favourable.

Frequently asked questions

Why did Bharat Coking Coal shares rise?

Bharat Coking Coal shares rose 6.3% to Rs 31.62 after the company reported a return to profitability in the September quarter. Net profit reached Rs 123.7 crore, compared with a loss of Rs 53 crore a year earlier. Revenue increased 39% to Rs 4,412.58 crore.

What was Bharat Coking Coal's Q2 net profit?

Bharat Coking Coal reported a net profit of Rs 123.7 crore for the September quarter, compared with a net loss of Rs 53 crore in the same quarter last year. EBITDA also turned positive at Rs 200 crore against a loss of Rs 383 crore.

What was Bharat Coking Coal's Q2 revenue?

Bharat Coking Coal reported September quarter revenue of Rs 4,412.58 crore, up 39% from Rs 3,173.25 crore in the year ago quarter. Coal offtake rose 10% to 8.89 million tonnes, while sales per tonne increased to Rs 3,668 from Rs 2,973.

What was Bharat Coking Coal's EBITDA margin in Q2?

Bharat Coking Coal reported an EBITDA margin of 4.5% in the September quarter, compared with negative 12.1% a year earlier. EBITDA was Rs 200 crore against a loss of Rs 383 crore in the corresponding quarter.

What is Bharat Coking Coal's share price compared with its IPO price?

Bharat Coking Coal shares traded at Rs 31.62 after gaining 6.3% in the reported session. The stock had listed at Rs 45 against an IPO issue price of Rs 23. At Rs 31.62, it was down 33.6% from the listing price but up 23.9% from the issue price.

Did Bharat Coking Coal's receivables decrease?

Yes, Bharat Coking Coal's receivables fell to Rs 2,105 crore at the end of September from Rs 2,863 crore in March. The reduction was Rs 758 crore, or about 26.5%. The available figures do not specify how much of the reduction came from cash collections.