Coal India’s Q2 net falls 16%; declares 7.5% dividend

By: |
November 12, 2020 4:45 AM

Net sales during the quarter under review improved 14% compared to the net sales of Rs 17,007.10 crore during the earlier quarter, when demand from the power sector fell significantly with a fall in power demand in the wake of Covid -19.

Net cash flow from operations were at a negative of Rs 3,601.27 crore with mounting power sector dues, though cash flow from investments were positive at Rs 5,159.93 crore during the quarter.Net cash flow from operations were at a negative of Rs 3,601.27 crore with mounting power sector dues, though cash flow from investments were positive at Rs 5,159.93 crore during the quarter.

Coal India’s (CIL) net profit dropped 16% year-on-year at Rs 2,951.60 crore for the September quarter against Rs 3,522.90 crore during the corresponding period last fiscal, though net sales on a year-on-year basis were 2.5% more at Rs 19,484.15 crore during the quarter.

The company, after its board meeting, declared an interim dividend of Rs 7.50 per share, payable from November 27 onwards. It also informed the exchanges about the incorporation of Coal Lignite Urga Vikash, a JV company formed in July this year with Neyvelli Lignite Corporation for developing 5,000 mw of solar thermal assets.

Net sales during the quarter under review improved 14% compared to the net sales of Rs 17,007.10 crore during the earlier quarter, when demand from the power sector fell significantly with a fall in power demand in the wake of Covid -19.

The company’s total income for the quarter at Rs 22,237.82 crore, almost remained at the same level compared to the income of Rs 22,021.94 crore during the same period last fiscal. But both profit after tax and profit before tax declined above 16% and 15%, respectively with PBT during the quarter under review going down to Rs 4,060.70 crore from Rs 4,277 .15 crore during the same period last fiscal. But PBT during the September quarter this fiscal significantly improved nearly 45% over the June quarter’s Rs 2,800.13 crore.

Net cash flow from operations were at a negative of Rs 3,601.27 crore with mounting power sector dues, though cash flow from investments were positive at Rs 5,159.93 crore during the quarter.

The company’s average realisation from 108.15 million tonne of coal sales through fuel supply agreement was Rs 1,412.12 per tonne while e auction realisation was Rs 1,437.36 per tonne from sales of 22.36 million tonne between July and September.

For the half yearly period, the company reported a 38% year on year fall in net profit at Rs 5,029.11 crore on a total income of Rs 41,509.65 crore, which declined more than 13% year on year. Income from sales also declined above 13% year on year at Rs 36,491 .25 crore.

The company’s basic earnings per share for the half yearly period this fiscal was Rs 8.16 against Rs 13.23 during the same period last fiscal, while basic EPS for the September quarter was Rs 4.78 against Rs 5.72 during the same period last fiscal.

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