Coal India Q2 result update!
Last updated: 11 Nov, 2020 | 01:49 pm
- Profit declines: Coal India, one of the World’s largest coal producer reported a 16.31% yearly fall in consolidated net profit at ₹2,948.12 crore for the quarter ended September 30. Net profit stood at ₹3,522.70 crore for the same quarter a year ago. Analysts had earlier estimated net profit to be at ₹2,817. Revenue from operations was up by 3.78% on a yearly basis to ₹21,153.07 crore.
- Expenses drag bottom line: Even with a marginal rise in revenue, the company saw a fall in net profit, largely because of a rise in total expenditure ₹18,177.82 crore from ₹17,734.44 crore on a yearly basis.
- Business performance: A 9.41% yearly increase was recorded in offtake of raw coal, for the quarter the figure was 133.96 million tonnes as against 122.44 million tonnes a year ago. E-auction volumes stood at 22.36 million tonnes, up 44% from 15 million tonnes a year ago whereas FSA volumes by up 4% yearly to 108.15 million tonnes. Production jumped by 10.56 % on a yearly basis to 114.98 million tonnes.
- Dividend: The board has also approved an interim dividend of ₹7.50 per share, the record date for the same has been fixed as November 20, 2020.
Coal India had a tepid performance in the last quarter because of low demand as well as depressed coal prices. Production, as well as offtake, were muted on lesser power consumption in factories and offices. However, as evident from the production and offtake numbers, demand has continued to improve after resumption in industrial activities following the prolonged Covid-19-led lockdown. 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 Central Government’s recent push to significantly reduce import of thermal coal in the coming years.