Coal India Q2 profit soars 106% to ₹6,044 cr; Co approves dividend of ₹15 | Mint
State-owned Coal India on Monday reported a consolidated net profit of ₹6,043.55 crore for the second quarter (Q2FY23), up 106% from ₹2,936.91 crore in the year-ago period. On Monday, ahead of the results, Coal India shares closed 1.40% higher at 249.50 apiece on the NSE.
That beat an average analyst estimate of ₹5,550 crore estimated by Bloomberg.
On a sequential basis, net profit after tax (PAT) fell 32% from ₹8,832.86 crore in the previous June quarter (Q1FY23).
CIL’s board has also approved a dividend of ₹15 per share, the miner said in a regulatory filing.
The mining giant’s consolidated revenue from operations during the quarter under review increased to ₹29,838 crore, compared with ₹23,291 crore in the same period last year.
The profit before tax (PBT) for the September quarter came in at ₹7,687 crore, up over 111% from ₹3,643 crore in the year-ago quarter.
CIL’s total expenses in the second quarter increased to ₹23,770 crore from ₹20,424.52 crore in the corresponding quarter of the previous fiscal.
CIL, which produces about 80% of India’s coal, shipped almost 5% more of the fuel during the period and earned a higher average price on those sales, the company said.
Demand for coal, which accounts for around 70% of the country’s electricity generation, has soared following a post-pandemic revival in industrial activity and on increased use of air conditioning during a sweltering summer that delivered severe heat waves. The war in Ukraine has sent seaborne coal prices through the roof, adding competition for domestic supplies that fell short of demand.
CIL has benefited from the supply squeeze. The miner has earned an average ₹1,781.3 a ton on sales, 23% higher from a year earlier, driven by a nearly four-fold jump in average spot auction rates.