State run coal miner Coal India Ltd’s net profit for the second quarter has fallen above 77% year – on- year to Rs 600.17 crore while net sales has dropped 7.30% y-o-y to Rs 16,212.55 crore. Profit from operations has drastically dropped above 98% y-o-y to Rs 50.58 crore from Rs 2,756.31 crore in the year ago period. Total expenses increased 9.69% y-o-y to Rs 16,161.97 crore from Rs 14733.56 a year ago period. Profit before tax fell 66.35% y-o-y to Rs 1,366.12 from Rs 4,060.52 during the corresponding period in FY 15.
Although the markets expected a subdued result for weak volumes and low e-auction pricing, the results have been much below the expectation. CIL’s earnings have been low during the quarter since sales were under pressure with a muted demand scenario for which off-takes were down 4.9% at 116mt.
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A CIl official told Fe although there was an average 6.29% coal price hike across the board in May, its impact was not felt because fuel supply agreement volumes were low. However, CIL decided to push more coal into the e-auction platform – nearly 10% of its production but realization from e-auction was down 10% y-o-y. Average realization from e-auction was Rs 1,600 per tonne during the quarter which had a negative impact on the net profit.
Earning per share during the quarter was down to 95 paise per share from Rs 4.20 during the same period last fiscal.
For the half yearly period CIL’s consolidated net profit was down 41% y-o-y to Rs 3665.43 crore from Rs 6,251.26 crore during the corresponding period last fiscal. Operating profits during the quarter were also down 47.67% y-o-y to Rs 3,638.25 from Rs 6,953.58 during the period a year ago. Net sales were also down 6.41% y-o-y to Rs 34,634.42, while total expenses increased by Rs 941.8 crore to Rs 30,996.17 crore.
EPS for the six months period was Rs 5.80 against Rs 9.90 a year ago period.