Coal India on Tuesday reported a provisional profit before tax and dividend of Rs 12,396.47 crore on a provisional gross sale of Rs 52,088 crore with all its seven subsidiaries reporting profit this year. This is only the second occasion after 2005 that all CIL subsidiaries have reported profit, even as the parent company is on the verge of hitting the capital market.
CIL?s listing will be inclusive of its seven subsidiaries since all the companies function as CIL arms and are governed by a single policy framework. The subsidiaries are not likely to be treated as separate companies for separate listing.
Chairman Partha S Bhattacharyya said Northern Coalfields has been the highest contributor with Rs 3,775.45 crore followed by Mahanadi Coalfields with Rs 3,010 crore, South Eastern Coalfields with Rs 2,743.32 crore, Central Coalfields with Rs 1,500.26 crore, Western Coalfields with Rs 601.04 crore, Bharat Coking Coal with Rs 402.29 crore and Eastern Coalfields with Rs 152.36 crore.
In 2009-10, CIL?s had to shell out Rs 3,216.50 crore in wages over 2008-09 because of the pay revision. And so, though the profit was Rs 6,552.37 crore more in 2009-10 over the last fiscal, in effect, it has gone up by Rs 3,435.87 crore or 38.3%, said Bhattacharya.
The profit has gone up because of increased production, from 403.73 million tonne in 2008-09 to 431.27 mt in 2009-2010, and an average 11% increase in coal prices, though the production fell short of target by 3.73 mt, he added.
According to Bhattacharyya, CIL could have achieved its target and attained production growth of 7.6% instead of 6.8% had there been proper coal offtake. He said only 156.6 rakes were available from the railways on an average instead of 185 required daily. Also, pithead stock was restricted to below 40 mt. CIL currently has a stockpile of 62 mt for which it has had to slow down production.