Coal India Q3 results update
Last updated: 11 Feb, 2021 | 11:20 am
- Profit declines: Coal India has reported a 21.4% yearly fall in consolidated net profit to Rs 3,084.1 crore in Oct-Dec 20 period, missing street estimates. Analysts had earlier estimated net profit to be at Rs 4,172 crore. The bottomline was impacted due to steep fall in other income. Coal India's other income fell 54% on-year to Rs 648.59 crore.
- Revenue below estimates: The company's topline has also come in below street estimates. Consolidated revenues rose 2.1% on-year to Rs 23,686 crore. Analysts had earlier expected revenues of about Rs 23,686 crore. Production of raw coal increased 6% on-year to 157 tonnes. Raw Coal offtake increased 8.6% on-year to 154 tonnes.
While the company has missed estimates, the performance is improving as the economy improves. Last month, the company had announced that it has scaled up its capital expenditure budget for the ongoing fiscal by an additional Rs 3,000 crore, revising it to Rs 13,000 crore. This represents a 30% jump over CIL's original capex target of Rs 10,000 crore for 2020-21.
Production, as well as offtake, has shown improvement as factories and offices re-opened in the country. The company remains focused on automating the coal loading capacities in its 49 mines by 2024. Coal India is also set to be a major beneficiary of the Central Government's recent push to significantly reduce import of thermal coal in the coming years.