Coal India on Tuesday reported a consolidated net profit of Rs 7,941.40 crore for the first quarter ended June 30, 2023 compared with Rs 8,834.22 crore in the corresponding quarter of the previous year.
The 10-per-cent drop in net profit during the quarter comes amid lower realisation from e-auction sales and also a rise in employee benefit expenses during the period.
The total income of Coal India during the quarter
was Rs 37,521.03 crore compared with Rs 36,086.68 crore a year ago, a growth of 3.97 per cent.
The average realisation per tonne of coal sold through e-auction was Rs 3,740.84 compared with Rs 4,339.97 a year ago. E-auction volumes during the quarter was 16.10 million tonnes (mt) compared with 20.91mt a year ago.
However, on coal sales through fuel supply agreement, the average realisation per tonne was Rs 1,536.19 in the first quarter compared with Rs 1,442.67 a year ago.
Coal sales through FSA was 167.51mt against 153.80mt in the previous year.
Coal India’s total employee benefit expenses during the quarter was Rs 12,027.48 crore compared with Rs 10,072.68 crore in the first quarter.
“The agreement for salary and wages of non-executive employees (NCWA-XI) effective from 1.7.2021 has been implemented in June 2023 and salaries for June 2023 onwards are being paid at the revised rate,” Coal India said in a stock exchange filing.
The company has made provisions of Rs 800.26 crore for NCWA-XI for the quarter ended June 30, 2023. In FY23, a total provision of Rs 8,152.75 crore was made by Coal India under this head.
Total expenses of Coal India in the first quarter were Rs 26,785.68 crore compared with Rs 23,985.31 crore a year ago, a growth of 11.67 per cent.
Share price of the PSU fell Rs 2.60 or 1.12 per cent to Rs 230.25 on the BSE.
The stock rose about 8 per cent in the April-June quarter when compared with the 8.2 per cent rise in the Nifty energy index in the same period.
Last week, the PSU said it was planing to set up two thermal plants with an investment totaling Rs 21,547 crore in Odisha and Madhya Pradesh.
While one project is planned near Amarkantak in Madhya Pradesh, the other is at Sundergarh district, in Odisha.