Coal India (CIL) has been able to bring down its overall expenses by 3.3% during the nine months of this fiscal to Rs 54,241 crore from Rs 56,079 crore during the corresponding period last fiscal.
The reduction, mainly happening for the squeezing of employees’ benefits, didn’t reflect any operational efficiency, an analyst said.
The PSU miner claimed the cut in expenditure despite the increase in production during the nine months is a silver lining on the 21.4% year-on-year (y-o-y) fall in its consolidated net profit at Rs 3,085.4 crore during the third quarter this fiscal. But its 54% y-o-y fall in income from other sources has dented its bottomline.
The cut in employees’ benefits mainly include salaries, performance-related pay of executives, performance-linked reward of non-executives, and coal mines provident fund contributions saved the company Rs 735 crore. It saved another Rs 126 crore by bringing down miscellaneous expenses.