Coal India Q1 net profit up 8 pct at Rs 4,033.28 crore

Written by PTI | New Delhi | Updated: Aug 13 2014, 02:38am hrs
State-run Coal India (CIL) today reported 8 per cent jump in its net profit at Rs 4,033.28 crore on a consolidated basis for the first quarter ending June 2014 on the back of increased income.

The world's largest coal miner had reported Rs 3,731.04 crore net profit in the first quarter of 2013-14.

The PSU's income from operations was up by 8 per cent to Rs 17,799.54 crore during the April-June quarter this fiscal against Rs 16,472.42 crore during the corresponding period of the last fiscal, it said in a filing to the BSE.

Total expenses during the quarter also increased to Rs 14,036.91 crore from Rs 12,999.12 crore in first quarter of the last fiscal.

During the quarter, it produced 108.32 million tonnes (MT) of coal as against 102.89 MT during the same period in the previous fiscal.

The offtake increased to 119.60 MT as against 115.36 MT in the first quarter of the last fiscal.

Coal India, which accounts for over 80 per cent of the domestic coal output, had produced 462.42 million tonnes (MT) of coal in FY 2013-14 -- missing its target of 482 MT.

Shares of the company closed at Rs 364.35 apiece on the BSE, up 1.86 per cent from the previous close.

Meanwhile, the Coal India board today agreed to send a note to Union Coal Ministry to convey that cut in e-auction coal will lead to revenue loss and supply issue to a certain category of customers.

Sources said that there was no discussion on coal price but there was discussion on e-auction and will send a note to highlighting problems in cutting e-auction quantity.

The government yesterday said it is looking at selling 10 per cent stake in CIL, the proceeds of which will be credited to Public Account, under the head National Investment Fund.

"Government is proposing to disinvest 10 per cent of GoI's equity in CIL out of its holding of 89.65 per cent," Minister of State for Coal and Power, Piyush Goyal has said.

He did not specify any timeline for it. At today's closing share price, 10 per cent stake sale in CIL would fetch the government about Rs 23,000 crore.

Goyal had admitted that trade unions were opposed to the idea of any further divestment in the world's largest coal miner.

"In the recent past five central trade unions operating in coal industry i.e. Indian National Trade Union Congress, All India Trade Union Congress, Bhartiya Mazdoor Sangh, Hind Mazdoor Sabha and Centre for Indian Trade Union Congress had expressed reservations on further disinvestment in CIL," he said.

Earlier this year the government had said it is looking at selling stake in CIL in the current fiscal to help meet its disinvestment target.

A planned stake sale in CIL last fiscal had to be deferred after stiff opposition from the trade unions. The coal major had to make up for that by paying about Rs 19,000 crore as dividend to the exchequer.