WEAK Q2:Coal India

Coal India is set to report weak financials for Q2.
As per Denofwealth estimates, *PAT can be lower/less than 450cr Vs Bloomberg estimate of 2031 Crores*

_There is no one-time write-off_

Sharp decline in PAT due to wage revision ( annual additional burden of 5600 Crores). *Higher wages is permanent, of recurring nature*. Hence even coming quarter may not see BIG rebound in profits.

Moreover, Q2 can witness miss of 800 Cr in
Topline also Vs Bloomberg estimate

Another Dampener: OFS in pipeline as Govt will offload 1O%. *SBI Capital Market and ICICI Securities recently met Department of Disinvestment, Retail investors may get 2% discount*

Finally, stock had been favourite of mutual funds etc due to high dividend in past. However with lower profits, dividend in current year can be lowered or co will have to dig into reserves for Decent dividend

Stock can see lower levels