Coal India (CIL) on Thursday reported a net profit of Rs 4,238.55 crore for the quarter ended March FY15, down 4.41% from Rs 4,434.18 crore in the same period last fiscal. The Street, however, was expecting a steep rise in profits.
For the full year, net profit fell 9.16% to Rs 13,726.70 crore.
The fall in profits is mainly due to low e-auction sales, which were at 5%of total sales during the initial months and increased to 7% in the last quarter. CIL ended FY15 with 45 million tonne of e-auction sales, nearly 9.77% lower than the target. Though the company got an average premium of 60% over the notified price in e-auctions, that could not offset the lower realization from lower volumes.
According to a CIL official, e-auction sales were 12% of total sales in FY14, which aided the margin. In FY15, besides lower e-auction sales, increase in expenditure — both during the last quarter and the full year — contributed to the dip in net profit.
Total expenditure for the quarter increased 3.86% y-o-y to Rs 16,072.72 crore and 7.76% for the whole year to Rs 59,104.47 crore.
Production for the year grew 6.9% to 494.23 mt and offtake grew 3.80% y-o-y to 494.23 mt. During the quarter, production registered 6.03% y-o-y growth to 151.86 mt, contributing to growth in net sales.
Net sales for the quarter grew 3.77% y-o-y to Rs 21,339.59 crore from Rs 20,563.88 crore.
For the full year, net sales rose 4.97% to Rs 74,120.07 crore.
Earnings per share touched a low of Rs 6.71 during the quarter against Rs 7.02 in the same period a year ago. For the whole year, EPS dropped to Rs 21.73 from Rs 23.92 in FY14.
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