Coal India net profit up 9% on higher sales

Written by PTI | Kolkata | Updated: Feb 20 2013, 23:49pm hrs
The largest coal miner in country, Coal India (CIL) today reported close to 9 per cent rise in consolidated net profit for the third quarter (Q3) ended December 2012 at Rs 4,395 crore on the back of higher coal sales.

The company's net profit was at Rs 4,037 crore in the corresponding period of the last fiscal, CIL Chairman S Narsing Rao said.

The consolidated net sales from operations of CIL for the period stood at at Rs 17,325.04 crore, registering an increase of close to 12.8 per cent over the year-ago period, it said.

CIL's net sales in the October-December period was at Rs 15,349 crore, it added.

The total expenses of the company during the period also went up to Rs 13,457 crore on account of higher expenses on employee benefits and others expenditure.

Wage bill rise was due to normal annual wage revision of employees and dearness adjustment which comes to 15 per cent rise, Rao said.

The total production of the company during the quarter stood at 117 million tonnes (MT), registering an increase of 2 per cent over the year-ago period.

Coal offtake during the period also went up to 120 MT, as against 110 MT in the corresponding quarter of the previous year.

The coal PSU produced 114.6 MT in October-November period of last fiscal.

Rao said third quarter faced a decline in e-auction coal sales to 10.48 million tonne down 8.7 per cent from the corresponding period last year sale of 11.48 million tonne.

In the nine month period in 2012-13 the decline was 5.34 per cent to 34.24 million tonne.

However, the realisation was higher at Rs 2,647 per tonne during the current fiscal compared to realisation of Rs 2,497 per tonne from e-auction coal sale in the corresponding nine months of 2011-12.

Rao said there was need for higher railway rake allocation for the miner despite there had been a rise of 10 per cent during the quarter under review.

The pithead stock of coal had increased to 47 million tonne as on December, the company said.

Asked about price-pooling, Rao said no final decision had been arrived.

CIL which so far has not decided to import coal to meet the power sector demand had said so far 55 FSAs had been signed.

The cash reserve of the state owned company was at Rs 65,325 crore as on December 2012.

Meanwhile, the standalone net profit of the company for the quarter ended December 31, 2012 was at Rs 1,696.9 crore, registering a growth of 39 per cent.

The PSU's standalone net profit stood at Rs 1,219 crore in the December quarter of FY12, the company said.

The standalone net sales of CIL in the November-December quarter went up to Rs 90 crore, over Rs 71 crore in the same period of last financial year.

The shares of CIL closed today at Rs 347.80 apiece on the BSE, up 0.80 per cent from the previous close.