Coal India, the country's largest coal-producing company, on Wednesday reported 55.1 per cent year-on-year (YoY) decline in consolidated net profit at Rs 2,077.5 crore during the first quarter ended June 30, 2020, impacted by business disruption caused by coronavirus pandemic and subsequent lockdown. The state-owned entity had posted consolidated net profit of Rs 4,630 crore in the same period last year, it said in a regulatory filing.
Consolidated revenue from operations fell by 25.9 per cent to Rs 18,487 crore in the first quarter of current fiscal compared to Rs 24,938.99 crore in the corresponding quarter last year, the Kolkata-headquartered company said.
The net sales declined by 26 per cent to Rs 17,007 crore during Q1 FY21 as against Rs 23,223 crore in Q1 FY20.
EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) dropped 53.8 per cent YoY to Rs 3,051.7 crore and margin slipped by 1,000 basis points to 16.5 per cent in Q1 FY21.
Total expenditure of the company decreased to Rs 16,470.64 crore in Q1 FY21 from Rs 19,077.44 in Q1 FY20.
During April-June quarter, Coal India produced 121.04 million tonnes of coal compared to 136.94 million tonnes produced in the year ago period, registering a fall of 11.6 per cent. Coal offtake reduced by 21.5 per cent to 120.42 million tonnes from 153.49 million tonnes in Q1 FY20, due to less demand from power sector as well as closure of industries in the non regulated sector due to COVID-19.
On COVID-19 outbreak, Coal India said the continuing pandemic has impacted the business of the group adversely. "The group is however taking continuous measures to combat adverse impact of COVID-19 and has implemented manifold measures for ease of doing business. The group has considered the possible effects that may arise due to pandemic in the preparation of the current quarter results including the recoverability of carrying amounts of financial and non-financial assets as on June 30, 2020," it said.
The company further stated that it will continue to closely monitor any material changes arising of future economic conditions and impact on its business.
Ahead of Q1 earnings, shares of Coal India ended trade at Rs 136.30, up 2.10 per cent, against previous closing price of Rs 133.50 on the Bombay Stock Exchange on Wednesday.
By Chitranjan Kumar
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