Coal India Q1 net down 23 pct, misses expectations

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Kolkata | Published: August 15, 2017 6:55:23 AM

PSU coal miner Coal India has reported a 23.29% year–on–year decrease in its net profit to Rs 2,353.21 crore for the quarter to June 2017 in a backdrop of low revenue realisation from the downgraded mines.

Coal India, Coal India news, Coal India latest news, Coal India net profit, Coal India profitCIL’s production for the quarter fell to 118.84 million tonne from 125.67 mt during the year-ago period. (Reuters)

PSU coal miner Coal India (CIL) has reported a 23.29% year–on–year decrease in its net profit to Rs 2,353.21 crore for the quarter to June 2017 in a backdrop of low revenue realisation from the downgraded mines. The company reported a net profit of Rs 3,065.26 crore during the year-ago period. Profits during the quarter under review have been much below the market expectations.

The coal controller has downgraded around 196 of Coal India’s total 394 mines in terms of coal quality, which resulted in lower revenue realisation from these mines. The miner has also closed down 15 mines for escalating cost of operations, for which production has been hit during the quarter under review.

CIL’s production for the quarter fell to 118.84 million tonne (mt) from 125.67 mt during the year-ago period. However, off-take during the quarter increased by 4.18 mt to 137.42 mt. This resulted in a 4.25% y-o-y increase in revenue from operations to Rs 20,567.81 crore during the quarter. The company clocked Rs 19,728.05 crore revenue from operations during the corresponding period last fiscal.

Gross sales increased 5.20% y-o-y to Rs 30,317.92 crore during the quarter from Rs 28,516.88 crore during the same period a year ago.

Although the company, during the quarter, reported 10.11% y-o-y increase in total expenses to Rs 17,836.74 crore, up from Rs 16,197.89 crore in the year-ago period, power expenses reduced by Rs 4.74 crore to Rs 617.76 crore during the quarter under review. Tax expenses went up a tad to Rs 1,585.93 crore during the quarter from Rs 1,564.06 crore during the same period last fiscal.

Expenses on account of employees benefit went up 5.55% y-o-y to Rs 8071.57 crore from Rs 7646.52 crore during the corresponding period last fiscal. The company during the quarter made an ad hoc provision of Rs 688.94 crore towards salaries and wages of non executive employees, whose pay revision was due on July 2016. Provisioning of Rs 89.34 core has been made towards salaries and wages of executive employees whose pay revision has been due on January 2017.

However, CIL’s basic earning per share fell to Rs 3.79 during the quarter under review from Rs 4.85 during the corresponding period last fiscal.

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