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Coal India rallies as Q4 profit beats analyst forecast

The company's board has approved rationalisation of coal prices from with effect from May 28, 2013.

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SI Reporter Mumbai
Last Updated : May 28 2013 | 9:25 AM IST
Coal India has rallied 5% to Rs 329 in opening deals on BSE after it reported better-than-expected 35% year-on-year (yoy) jump in its consolidated net profit at Rs 5,413 crore for the fourth quarter ended March 31, 2013 on back of higher than expected sales volumes. The state-owned coal manufacture had profit of Rs 4,013 crore in a year ago quarter.

Net sales increased 2.5% to Rs 19,904 crore on yoy basis. EBITDA or operating profit increased 51% yoy to Rs 6,600 crore due to lower employee costs.

The company's coal production fell marginally to 143.30 million metric tons. But its supplies rose 5.7% to 129.95 million tons in the past quarter because increased availability of rail wagons allowed Coal India to ship more of its output.

Analysts on an average had expected net profit of Rs 4,225 crore and net sales of Rs 16,958 crore for the quarter.

Meanwhile, the company said that its board approved rationalisation of coal prices from with effect from May 28, 2013.

“Due to the rationalisation of coal prices, there will be approximately additional revenue of Rs 2,119 crore for the balance period of financial year 2013-14. The yearly additional revenue would be around Rs 2,512 crore,” it added.

 

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First Published: May 28 2013 | 9:16 AM IST

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