More Stories

Informist, Wednesday, May 7, 2025

 

Please click here to read all liners published on this story

--Coal India Jan-Mar consol net profit INR 96.04 bln
--Analysts saw Coal India Jan-Mar consol net profit INR 80.20 bln
--Coal India Jan-Mar consol PAT INR 96.04 bln vs INR 85.72 bln year ago
--Coal India to pay INR 5.15 per share final dividend
--Coal India Jan-Mar consol revenue INR 378.25 bln vs INR 382.13 bln year ago
--Coal India FY25 consol PAT INR 353.58 bln vs INR 374.02 bln year ago
--Coal India FY25 consol revenue INR 1.434 tln vs INR 1.448 tln year ago
--Coal India Jan-Mar consol EBITDA INR 132.91 bln vs INR 127.82 bln year ago 
--Coal India Jan-Mar sales volume in e-auction 21.57 mln tn vs 22.41 mln tn 
--Coal India Jan-Mar sales avg realisation per tn INR 1,702 vs INR 1,698 
 

 

By Sunil Raghu

 

AHMEDABAD - State-owned Coal India Ltd.'s net profit for the March quarter rose 12% from a year ago as realisations were higher despite near-steady offtake volume. The profit and revenue were higher than expected by the Street. Analysts had expected another weak financial performance, flatter sales volume, and fall in average price realisation per tonne of coal sold amid tepid demand.

 

The Maharatna company's consolidated net profit for the quarter was INR 96.04 billion against the Street's estimate of 80.20 billion. The share of profit from its joint ventures more than doubled on year to INR 1.69 billion. The company's consolidated revenue fell 1% on year to INR 378.25 billion, but was higher than INR 365.5 billion the market had estimated.

 

Total expenses during the March quarter rose by 0.4% on year to a little over INR 290.6 billion. Although the largest cost overhead, employee benefit expenses, accounting for 42% of the total expenses, declined by 10.7% on year to INR 120.9 billion, the company's expenses on contractors, who deploy manpower to mine and produce coal, shot up by 18.9% on year to nearly INR 95 billion. The cost of material consumed rose 3.6% on year to INR 34.8 billion.

 

The sales volume fell 0.6% on year to 200.7 million tonnes during the quarter. The company's total earnings from coal sales fell nearly 0.3% on year to INR 341.6 billion, mostly on account of lower volume of coal sold in the auctions.

E-auction sales are the most important parameter for Coal India's profit. Bidding at the e-auctions starts at a minimum of 20% over the notified price of coal. While production cost is the same for the coal sold under long-term agreements and e-auction, the latter gets higher revenue which directly adds to its profit. The world's largest coal miner sold 3.7% less coal in the March quarter through e-auctions at 21.6 million tonnes, despite prices staying firm at INR 2,614.9 per tonne. As a result, the company's total income from e-auctions dipped to INR 56.4 billion from INR 57.4 billion in the year-ago period.
 

The company took a hit on the long-term contractual supply as well where coal is sold at notified and pre-determined prices. Referred to as fuel supply agreement, it is the sales volume driver for Coal India and makes up for most of its revenue. Fuel supply agreement sales volume during March quarter declined even as the average price realisation jumped up by nearly INR 12 per tonne on year.
 

The Maharatna company sold a total of 175.1 million tonnes of coal under fuel supply agreement during the quarter at an average price realisation of INR 1,547.3. In comparison, it had sold 176 million tonnes of coal at an average price realisation of INR 1,535.4 in the year-ago period.
 

For FY25, Coal India's consolidated net profit fell by 5.5% to INR 353.6 billion and the revenue declined by nearly 1% to a little over INR 1.4 trillion. The company's board approved a final dividend of INR 5.15 per share.
 
Coal India declared it earnings after market hours but investors seem to have known about the company's financial performance as the stock closed 1.3% higher at INR 383.30 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.