CIL net up 8%, board urges govt not to cut down on e-auction

Written by fe Bureau | Kolkata | Updated: Aug 13 2014, 07:04am hrs
Coal India (CIL), the world's largest coal miner, said profit after tax jumped 8.1% year-on- year for the quarter to June surpassing analysts expectation of around 5% growth in net profit.

CIL registered a net profit of Rs 4,033.22 crore for the quarter under review against a net profit of R3,731 crore during the corresponding period last fiscal. This happened on the back of full impact of price rise made during the last fiscal.

CIL hiked prices twice during the last fiscal an increase in the range of 10%-12% in May 2013 across various grades, followed by a 10% increase in Western Coalfields' prices in the third quarter of FY14. A growth in production and offtake during the quarter also contributed to the increase in profit.

Although the chairman and managing director (additional charge) did not want to comment after the board meeting on Tuesday, a director on the condition of anonymity said the governments decision to cut down on e-auction didnt have an impact this quarter since e-auction sales remained flat compared to the sales in the corresponding period last fiscal.

The cut in e-auction sales is yet to be made effective and the board on Tuesday has decided to write to the government requesting not to cut down on e-auction sales since it would have a negative impact on the companys bottom line as well create supply constraint for a good number of consumers, whose only source of fuel is e-auction coal, the director said.

Meanwhile, CIL's net sales for the quarter grew 8% y-o-y to R17,799.54 crore from R16,472.42 crore during the same period a year ago. Profit before tax for the quarter increased 4.71% y-o-y to R5,957.78 crore from R5,689.45 crore for the period last fiscal. Operational profit also jumped 8% to R3,762.63 crore from R3,482.30 crore a year ago.

The companys earnings per share increased to R6.39 during the quarter from R5.91 during the period a year ago. CILs net profit on a quarter-to-quarter basis dipped 9% in the current quarter to R4,033.22 crore from R4,434.18 crore during the corresponding period last fiscal. Profit before tax during the quarter decreased 13.67% q-o-q to R5,957.78 crore from R6,901.60 crore during the corresponding period in the last fiscal.