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Coal India net falls 11%; higher output costs bite

Coal India?s net profit dipped 11% y-o-y to R3,894 crore for the quarter ended December against R4,395 crore in the year-ago period.

Coal India?s net profit dipped 11% y-o-y to R3,894 crore for the quarter ended December against R4,395 crore in the year-ago period. CIL CMD S Narsing Rao said the dip was mainly on account of an increase in cost of production, lower realisations from e-auction and higher sales via the FSA route that resulted lower supplies to the market.

Cost of production during the quarter rose by an average R13 per tonne, though average aggregate sales realisation for the quarter was higher. But for the April to December period sales realisation was down by R12 per tonne creating an average of impact of R25 on per tonne of coal.

While the average aggregate sales realisation for quarter to December was R1,448 per tonne against R1,432 during the same period in FY 13, for the nine-month period, it was R1,433 per tonne against R1,445 per tonne in the year-ago period.

CIL?s net profit for the nine-month period in FY 14 dipped 10.5 % y-o-y to R10,677.49 crore from R11,942.45 crore during the corresponding period a year ago. Net sales for the nine-month period was, however, a little down at 0.17% y-o-y to R48,812.04 crore against R48,898 crore during the same period in FY 13.

For the quarter to December, net sales were R2,941 crore lower at R16,928.13 crore against R17, 328.04 in the same period of FY 13.

Average realisation from e- auction during the three-month period was down to R2,232 per tonne from R2,941 during the same period last fiscal. For the nine-month period, the average realisation from e-auction was down 14.76% y-o-y to R2,200 per tonne from R2,581 during the same period a year ago.

However, e-auction volumes during the three-month period went up to 15.14 million tonne from 10.48 mt during the corresponding period last fiscal. For the nine-month period, it went up to 41.26 mt from 35.61 mt during the same period in FY 13.

Rao said 1.8% growth in offtakes for the nine-month period was less than satisfactory, which also affected profits. CIL, however, met FSA obligations above its target of 85% to 87.5%.

Although offtakes were low, pit head stock was 38 mt at the end of the nine-month period, down from 60.5 mt at the end of fiscal 2013.

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First published on: 13-02-2014 at 04:51 IST
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