The share price of Coal India Ltd (CIL), world’s largest miner, fell around 2.92% on the NSE to Rs 259.50, their lowest levels since 21 March 2014. This was the biggest fall for the shares of the state-run firm in 11 weeks. The share prices of the company had slipped over 7% on 14 March 2017. Today’s dismal show by the stock was on the back of poor Q4 FY17 results reported by the company.
On Monday CIL reported a sharp drop in its consolidated net profit in the fourth quarter of the fiscal year 2017 to Rs 2,717.86 crore, down by 38.2% from the Rs 4,399.50 crore profit earned in the corresponding period of the previous fiscal year. Analysts on average had estimated a consolidated profit of Rs 3,820 crore, according to Thomson Reuters data.
For the full financial year, Coal India posted a net profit of Rs 9,267.75 crore as against Rs 14,267.93 crore in the previous financial year. Profits dipped despite around 10% rise in coal sales to Rs 24,032.54 crore during the quarter under review. During the quarter, the company’s revenue stood at Rs 24,780 crore as against Rs 22,813.02 crore in Q4FY16. The total expense in Q4FY17 was Rs 22,357.54 crore as compared to Rs 18,173.8 crore in Q4FY16.
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Coal production of the Kolkata-based company, which accounts for more than 80 percent of the country’s output, rose to 176.37 million tonnes in the fourth quarter from 165.24 million tonnes a year earlier, while the coal dispatch quantity for the quarter under review was 151.54 million tonne. For the full fiscal, the production stood at 554.14 million tonne as compared to 538.75 million tonne in FY16.
The company informed the exchanges that it’s employees benefit cost stood at Rs 9,229 crore during the quarter, sharply higher from the Rs 7,843 crore registered in the corresponding quarter of the previous fiscal year. CIL’s provision jumped to Rs 1,238 crore, mainly on account of grade slippages during the quarter as against Rs 291 crore in the corresponding quarter last financial year.
These Q4 results were as per the new accounting standards and fourth quarter figures for the previous financial were restated to maintain parity.