State-controlled behemoth Coal India on Tuesday reported close to 15% year-on-year fall in its consolidated net profit at Rs 3,065.28 crore for the quarter ended June 30 as its net sales declined by over 6% y-o-y.
The world’s largest coal miner posted a net profit of Rs 3,596.93 crore in the same period a year ago. During the April-June period this year, production of the company witnessed a 3.5% y-o-y growth at 125.67 million tonne. Off-take during the period also soared to 133.24 million tonne from 129.39 million tonne in the corresponding period last year, registering nearly 3% y-o-y growth.
Despite a growth in coal production and offtake, the Maharatna company’s net sales during the June quarter fell 6.12% y-o-y to Rs 17,796.05 crore from Rs 18,955.75 crore in the same period a year ago, according to a stock exchange filing. Its total income from operation also decreased to Rs 18,421.87 crore in the first quarter of this fiscal from Rs 19,518.08 crore in the year-ago period.
“Although there was about 3% higher offtake, sales in value terms decreased during the quarter as average realisation from e-auction has dropped to Rs 1,570 per tonne during the first quarter of the current fiscal from Rs 2,184 a year-ago due to low market interest. Quantity under FSA has also declined by about one million tonnes during the quarter. The company’s interest income from bank deposit has also decreased during this period,” a senior CIL official told FE, requesting anonymity.