Coal India's reported nos (EBITDA: Rs38.6bn, -22.5% YoY, -37.8% QoQ) were disappointing. FSA pricing came in lower than expected (Rs 1,239/t, -4.4% YoY, -8.3% QoQ, -4.9% vs estimates) likely due to adverse mix and despite partial benefit of a price hike taken in end-May. E-auction realisations continue to languish (Rs 1,570, -28.1% YoY, -4.7% QoQ), though in line with estimates.

These numbers are undoubtedly weak, but things have moved significantly post June. The increase in imported coal/petcoke is likely to provide some boost to the e-auction realizations which continue to suffer, as the premium to FSA prices remains at near historic lows (27%). We also note that the realized eauction prices are much below import parity, even accounting for the asymmetric levies on domestic coal (6% excise vs zero import duty on Indonesian coal under FTA). Maintain BUY with a TP of Rs 369 (Unchanged, 8.0x FY18 EV/EBITDA)