Upside in revenue is largely on account of mining segment, which sells lignite in external market apart from captive consumption for its own power plant. Mining sales was higher by 52% to Rs 308.95 crore (or 77% of total sales). It seems there is higher lignite output compared to corresponding previous period benefiting out of mine expansion as well as delay in monsoon this year. The lignite volume was higher by 20% to 19.6 lakh tones and the bauxite volume was up by 129% to 4 lakh tones. Likewise the power segment revenue was up by 83% to Rs 93.73 crore on 11.1% rise in power generation in Q2FY13 to 266.61 Gwh. On EBIT level both mining and power has turned in strong performance. The segment profit of mining was up by 118% to Rs 203.63 crore on the back of higher sales as well as higher margin. On the other hand the segment profit of power was at Rs 14.76 crore compared to a loss of Rs 6.19 crore in the corresponding previous period.

Sales for the quarter include revenue of Rs 32 crore pertaining to last fiscal i.e. FY2011-12. The company though has increased the lignite price to Rs 635/ mt effective April 1, 2011, the SEBS paid Rs 500/ mt only and now the company has recovered the balance due of Rs 32 crore (for 18 months) of which Rs 22 crore pertain to FY2012-13. Similarly the company collected a due of Rs 14 crore for last 18 months from SEBs for the power supplies form its own power plant factoring in the increase in lignite price. Out of this Rs 14 crore, the portion belong to FY2011-12 is Rs 10 crore. Similarly in 2011-12 the company has made excess provision towards mine closure and with clarification from Ministry of Coal, the company has written back an amount of Rs 27 crore and that is part of other income. It seems the mine closure expenses of Q2FY12 was escalated to the extent of Rs 6-7crore. Excluding all this one off items in revenue and expenses, the growth in operating profit would not have so sharp as reported, nevertheless its much better than expected.

Other income jumped by 321% to Rs 62.12 crore on the back of write-back of Rs 27 crore of excess mine closure charges. The interest cost was nil compared to Rs 2.43 crore in the corresponding previous period. The depreciation was higher by 14% to Rs 29.92 crore. Thus the PBT was up by 174% to Rs 249.60 crore.

The taxation was higher by 184% to Rs 80.79 crore and the PAT was eventually higher by 170% to Rs 168.82 crore.

Half yearly performance

Sales were higher by 23% to Rs 878.75 crore. The operating profit was higher by 36% to Rs 485.88 crore facilitated by higher sales and 530 bps expansion in OPM. The other income was higher by 232% to Rs 81.83 crore, the interest cost was nil (Rs 4.92 crore in Q2FY12) and the depreciation was higher by 15% to Rs 59.44 crore. Eventually the PBT was higher by 56% to Rs 508.27 crore. The tax was higher by 55% to Rs 168.93 crore and the net profit was eventually higher by 57% to Rs 339.33 crore.

The stock hovers around Rs 202.75.