Following a marathon board meeting till 1 am, Sunday, Coal India Ltd finally reported a 3.99% year –on –year rise in its net profit to Rs 14,274.29 crore in FY 16, from Rs 13,726.61 crore last fiscal.
Following a marathon board meeting till 1 am, Sunday, Coal India Ltd finally reported a 3.99% year –on –year rise in its net profit to Rs 14,274.29 crore in FY 16, from Rs 13,726.61 crore last fiscal. Although production jumped 9.01% y-o-y to 538.75 million tones and off take increased 9.22% y-o-y to 534.49 mt in FY 16, net profit did not commensurate with the rise in production and off take. The company reported a flat fourth quarter with profit after tax at Rs 4,247.92 crore against Rs 4,238.54 crore during the corresponding period, FY 15.
While CIL informed the BSE that it would declare its financial results for the quarter to March as well as for the year FY 16 on May 28, investors were put to a quandary when till 12 pm, Saturday, the results were not declared. Finally the results were filed on Sunday morning.
A source in the know said that the auditors meeting continued for two days following which the board meeting started. The board was unable to come to a consensus on factoring the above 55 million tonne pit head stock into the financial results.
According to a CIL official generally pit head stocks are shown as deemed income, but certain independent directors raised the issue that stock piles meant cost and as long as buyers were not secured for such stock, it should not be shown as deemed income. Besides with the huge pit head stocks lying open, such coal has gathered moisture, which means there has been huge degradation in quality. The stock piles also got fired, which means it was an absolute loss for the company.
“CIL is now a victim of faulty planning under the command of ministry and some subsidiaries may slip into BIFR once again,” a senior official on the condition of anonymity said.
CIL’s total income from operation for the quarter remained flat at Rs 21,402.75 crore compared to Rs 21,339.55 crore during the corresponding period FY 15, while for FY 16, income from operations grew 5.04% y-o-y up to Rs 75, 644.27 crore from Rs 72,014.62 crore in FY 15. Operational profit for the quarter dipped to above 8% y-o-y to Rs 4,839.19 crore from Rs 5,2 66.83 crore during the same period last fiscal. For the year operational profit remained almost flat at Rs 15,839.84 crore from Rs 15,015.60 crore in FY 15.
Profit before tax for the quarter fell above 9% y-o-y to Rs 6,328.67 crore from Rs 6,991.44 crore during the same period a year ago. However, for the year PBT remained flat at Rs 21,589.09 crore against Rs 21, 583.92 crore last year.
Basic earning per share increased to Rs 6.73 during the quarter under review from Rs 6.71 during the corresponding period last fiscal. For the year EPS stood at Rs 22.60 up from Rs 21.73 last year.
While CIL’s average price realization from FSA sales were Rs 1,311 per tonne, average price realization from e-auction sales was 41% more than FSA price at Rs 1,858 per tonne. The company sold 66.31 mt via the e-auction registering net sales of Rs 12,321 crore.
· Profit after tax- Rs 14,274.29 crore in FY 16 against Rs 13,726.61 crore in FY 15. —- growth 3.99%
· Profit before tax – Rs 21, 589.09 crore in FY 16 against Rs 21, 583.92 crore in FY 15 – growth 0.02%
· Net income – Rs 75,644.27 crore in FY 16 against Rs 72,014.62 crore in FY 15 – growth 5.04%
· Production – 538.75 million tonne in FY16 against 494.24 mt in FY 15 – growth 9.01%
· Off take – 534.49 mt in FY 16 against 489.38 mt in FY 15 growth 9.22%.
Coal India hikes price
The Coal India Ltd board has decided an average 6.29% price increase over its current coal prices across all grades. The new price would be effective from May 30, the board informed the BSE after the meeting. The company also informed that the price rise would be applicable to all subsidiaries and CIL would generate additional revenue of Rs 3, 234 between May 30 and this year and March 2017 from the price rise.
The board has however, approved differential price for non regulated sector at a reduced rate of 20% over the price of the regulated sector for G6 to G17 grades of coal from all subsidiaries.
The proposal for rationalizing coal prices was mooted early this year and Fe reported that CIL was considering increasing prices of lower grades of coal and lowering prices of higher grade coal since there was huge disparity in cost per KCL/ KG between higher and lower grades.
The average 6.29% increase has been worked out increasing the prices of the lower grade coal and decreasing the prices of higher grade, an official said adding that coal prices across grades were lopsided.
While price per Kcal/ Kg worked out to 70 paise for higher grade say for coal with GCV ranging between 6400kcl/kg and 6700 kcl/kg, price per kg/kcl for lower grade of coal worked out be 17 paise for coal with GCV ranging between 2500kcl/kg and 2800 kcl/kg. Per kcl/kg should cost the same across grades and the price increase has somewhat adjusted the disparity, an official on the condition of anonymity. The price increase would surely have an impact on the price of power, said a CIL official, although none from the power sector was available to comment on it.