Coal India : Transcript of Analysts/Institutional Investor Meet/Con. Call

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:[e-mail]			FAX; 033-23246510
वेबसाइट: www.coalindia. In			E-MAIL: [e-mail]
			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.

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	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.

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	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.

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	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

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