Calcutta, Aug. 12: Coal India has posted an 8 per cent rise in consolidated net profit for the first quarter ended June at Rs 4,033.28 crore compared with Rs 3,731 crore in the corresponding period a year ago.
The increase in bottomline was driven by higher sales in spite of a marginal increase in production.
Consolidated sales of the country’s largest miner stood at Rs 17,799.54 crore during the quarter against Rs 16,472.42 crore a year ago.
Total production stood at 108.32 million tonnes (mt) while offtake was 119.60mt.
A year ago, production stood at 102.89mt and offtake at 115.36mt.
However, there was a decline in both production and offtake on a sequential basis.
Total expenses rose to Rs 14,036 crore from Rs 12,990 crore last year, driven by an increase in input cost and contractual expenses.
Coal India today held a board meeting to approve the results. According to Coal India sources, the board has agreed to send a note to the coal ministry to convey that a cut in e-auction volume would be detrimental to the company’s earnings and would create problems for customers.
Coal India sells around 10 per cent of its annual production through e-auction. The government has been pursuing the miner to cut down on sales through that route to increase the supply to power plants.
Coal and power minister Piyush Goyal had said the ministry had asked the PSU to ramp up production and lower e-auction sales to increase the the availability of power in the country.
Coal India has appointed MMTC to import 2.5-3mt of the fuel. “We have selected MMTC to import coal for our customers to meet 80 per cent of the supply quantity (according to the fuel supply agreement),” company sources said.
Meanwhile, the government has again decided to consider divesting a 10 per cent stake in Coal India.
The shares of Coal India today rose 1.86 per cent to Rs 364.35 on the Bombay Stock Exchange.