Coal India on Tuesday reported a 33.85% increase in its consolidated net profit to Rs 4,565.74 crore for the December quarter 2018, much above market expectations.
While analysts and brokerage firms didn’t expect an upbeat third quarter owing to low volumes of e-auction, increased supplies to the power sector contributed to the volume growth.
CIL fetched an average e-auction premium of 54% more than that of the notified price during the quarter under review with South Eastern Coalfields (SECL), commanding the highest premium of 85% more than that of the notified price followed by Mahanadi Coalfields with 84% more than that of the notified price.
CIL’s production for the quarter was 412.45 million tonne against 383.92 MT during the corresponding period last fiscal. Offtake during the quarter increased 5.5 % to 444.59 MT from 421.43 MT during the same period last fiscal.
The firm reported net sales of Rs 23,385.43 crore, an 11.17% y-o-y rise from Rs 20,772.23 crore during the corresponding period last fiscal. Expenses shot up 5.28% to Rs 19,181.06 crore from Rs 18,172.78 crore during the year-ago period, mainly on account of higher wages. Profit before tax jumped 33.86 % y-o-y to Rs 7,028.07 crore from Rs 4,648.10 crore a year ago period. CIL clocked an e-auction sale of Rs 4,171 crore, realising an average e-auction price of Rs 2,847 per tonne. Price realisation from fuel supply agreement was Rs 1,334 per tonne.
Until February, CIL supplied 407. 2 MT to the power sector, 7.3 % more than that supplied during the corresponding period last fiscal. This to a great extend addressed the sector’s woes, building up a coal stock in the thermal power units.