Coal India Ltd

- There is no explicit mention of any current or future fundraising through debt or equity in the provided text. - The company is undertaking a significant capex program (~Rs. 45,000 Crores over three years) primarily funded through internal resources. - Pramod Agrawal mentions that increasing production and dispatch by 40-50 million tons annually could generate enough resources to cover both dividends and capex, implying reliance on operational cash flows. - No direct reference to plans for debt issuance or equity dilution was made during the call. - The focus is on improving efficiency, increasing contractual capacity, and diversifying into solar power, with financial plans centered on existing cash flows rather than external fundraising.

- Capex of around Rs. 45,000 Crores planned over next 3 years, covering land development, rehabilitation, machinery replacement, and other expenses. - Significant investment (~Rs. 10,000 to 12,000 Crores) on coal evacuation infrastructure including CHP (Coal Handling Plants) to improve dispatch and evacuation. - Around Rs. 3,000 to 4,000 Crores spent on transportation infrastructure. - Focus on replacing old machinery; most major machinery ordered with delivery expected in 1.5 to 2 years; draglines expected in 4-5 years. - Investment in solar power projects targeting 2000-3000 MW capacity for economic sustainability. - Land acquisition will continue, expected to cost Rs. 3,000 to 5,000 Crores annually. - Coal to fertilizer and gasification projects under consideration but require partner participation and viability. - Use of outsourced mining contractors (MDO mode) to reduce machinery investment needs. - Capex intensity expected to remain high for at least two years to meet demand and operational efficiencies.

- Coal India expects demand and production to rise, with an aim to increase coal production capacity by 1.3 times the likely demand to ensure smooth evacuation and supply. - Targets dispatch of around 740 million tons but may recalibrate based on demand fluctuations due to COVID impacts. - Anticipates coal demand to peak around 2030 with thermal power PLF expected to improve, supporting volume growth. - Plans to increase production gradually by 40-50 million tons annually after an initial jump of 70-80 million tons in a normal year. - Capex focused on replacing old machinery, land acquisition, mine development, and improving first-mile connectivity, expected to enable sustained growth. - Diversification into solar power and other sectors planned for economic sustainability over the next 2-3 decades. - Operational focus on improving evacuation, dispatch, and in-house production to meet rising demand efficiently.

- EBITDA is expected to improve from next year onwards due to investments in mechanization and solar projects, which will reduce environmental load and improve efficiencies. - In a normal year with improved coal dispatch (e.g., 650 million tons), there will be a "tremendous increase" in profitability and EBITDA. - Even with a dispatch increase of 40-50 million tons beyond exceptional periods, there will be enough cash flow to sustain both capex and dividend payouts. - Profitability is projected to improve if dispatch grows by 70-80 million tons initially in a normal year, followed by 40-50 million tons annually. - Machinery upgrades and reduction in manpower (net annual reduction of around 13,000-14,000) will further reduce costs and increase EBITDA per ton. - Current FY22 EBITDA was around 25%, slightly lower than 28% last year due to difficult conditions; improvement is anticipated with normal demand growth.

- The contract level is now kept at least 1.3 times the likely demand, up from previous assumptions that contracts should match demand. - This adjustment is due to low contractor performance, with very few delivering 100% and hardly any achieving 200%. - Contractual capacity has been increased substantially across all subsidiaries and mines. - Three types of contractual capacity are considered: removal of overburden (OB) and coal, transportation, and crushing. - The company has increased capacity by 1.3 times at all these points to ensure preparedness for any increase in production demand. - This strategy aims to address evacuation challenges and production scaling efficiently.