Coal India Q1 results: Net profit declines 10% to Rs 7,941 cr

Coal India Ltd on Tuesday reported 10% decreased in consolidated net profit at Rs 7,941 crore for the quarter ending June 30, 2023. It reported consolidated net profit of Rs 8,833 crore in the year-ago period. 

The PSU firm's consolidated revenue from operations rose 2.5% to Rs 35,983 crore in Q1FY24 as against Rs 35,092 crore in Q1FY23. 

On Tuesday, Coal India's scrip closed trading 1% lower at Rs 230.4.

Expenses surged to Rs 26,785.68 crore from Rs 23,985.31 crore, a rise of 11.67%.

Coal India, under the Ministry of Coal, is a leading producer and supplier of coal in India.

Employee benefits expenses rose to Rs 12,027.48 crore in April-June this year from Rs 10,072.68 crore a year ago. Coal India said its provisions for wage hikes rose to Rs 800 crore from Rs 324 crore a year ago, cutting into its profit margin.

Contractual expenses were higher at Rs 6,682,78 crore in the quarter under review against Rs 5,565.65 crore a year ago.

Coal India in the filing stated that the agreement for salary and wages of non-executive employees (NCWA -XD effective from 01,07.2021) has been implemented in June 2023 and salaries for June 2023 onwards are being paid at the revised rate.

In the filing, the coal behemoth said it did not ''review the interim financial statements of eight subsidiaries (including their step-down subsidiaries) included in the consolidated unaudited financial results, whose interim financial statements reflect total revenues of Rs 37,725.92 crore, total net profit after tax of Rs 7,803 crore for the quarter ended June 30, 2023, respectively''.

These interim financial statements have been reviewed by other auditors, CIL added. On a standalone basis, the company reported a net profit of Rs 918.02 crore for April-June 2023 against Rs 160.98 crore a year ago. While standalone total income surged to Rs 1,140.50 crore from Rs 357.23 crore in the year ago period. During the quarter, the company's consolidated coal production was at 175.47 MT, higher from 159.75 MT in April-June FY23. The coal offtake was also higher at 186.95 MT from 177.49 MT a year ago. Coal India, under the Ministry of Coal, is a leading producer and supplier of coal in India. The company has eight subsidiaries operating under it.

The Kolkata-based company said it saw lower realisation per tonne of coal at Rs 3,740.84 in the auction segment in the first quarter, down 13.8% from a year ago.

This came even as India, the world's second-largest coal consumer and importer, saw higher demand for coal, as power plants stocked up for the surge in summer electricity consumption.

With inputs from PTI