Coal India's net profit up y-o-y by 178% in June quarter

11 Aug 2022 , 09:29 AM

On Wednesday, Coal India said that stronger sales caused its consolidated net profit for the first quarter of the 2022—23 fiscal year to jump by 175 % to Rs8,834 crore.

The miner reported a net profit of Rs 3,174 crore during the same period the previous year. As compared to the same time in FY22, when sales were reported at Rs23,293 crore, the business said in a regulatory filing on Wednesday that its sales for the quarter under review were up 39%, at Rs32,498 crore (The financial year 2021-22).

Despite increased production and dispatches during the period compared to Rs21,626 crore in the June quarter previous year, Coal India was successful in limiting overall costs at Rs23,985 crore.

From Rs1,843 crore in the same quarter last year, the cost of materials utilized increased to Rs3,057 crore in the quarter under review. Contractual costs increased from Rs 4,022 crore in the quarter that ended June 30, 2021, to Rs5,565 crore in the three months that ended June 30, 2022.

During the April to June 2022 quarter, the miner sold approximately 21 million tonnes of coal through e-auction, earning Rs4,340 per tonne.

The miner saw an increase in demand for the thermal power industry, which was experiencing fuel scarcity because of a significant rise in electricity usage. In the quarter of April through June 2022, it sold about 154 million tonnes of coal to the regulated industry.

Through the FSA (Fuel Supply Agreement) channel, a price of Rs1,442 per tonne was realized. In the months of April through June, the company’s output grew to 159.75 million tonnes from 123.98 million tonnes during the same quarter of the previous year.

Compared to the same period last year, the offtake increased to 177.49 million tonnes throughout the quarter. About 80% of domestic coal production is produced by Coal India. This fiscal year, the corporation wanted to produce 700 million tonnes, and by 2023—2024, it wanted to produce one billion tonnes. The price of the company’s shares on the BSE rose 2.02% from the previous close to concluding at Rs219.85 a share.