 "Coal India Q1 FY25 results: Net profit up 4.1% at Rs 10,959 crore")
National miner Coal India Limited (CIL) on Wednesday reported a 4.1 per cent year-on-year rise in consolidated net profits for the first quarter (April-June) of financial year 2024-25 (FY25) at Rs 10,959 crore. On a sequential basis, net profits attributable to the owners of the company rose at a faster clip of 26.2 per cent.
The revenue from operations rose minimally by 1.3 per cent to Rs 36,464 crore during the quarter, as compared to the same period of the previous year. The net income was similarly up by just 2.2 per cent to Rs 38,349.21 crore in Q1, up from Rs 37,521.03 crore in Q1 FY24.
The production of raw coal was up by 8 per cent to 189.3 million tonnes (MT) in Q1, while offtake rose by 6 per cent to 198.5 MT. Overburden removal, or the layers of soil and stone removed before mining can take place, rose 5 per cent to 524.9 MT. Coal India and its subsidiaries accounted for 77.5 per cent of India's coal production of 997.25 MT in FY24, according to the Coal Ministry.
Five out of CIL's 7 subsidiaries, spread across the country, met their production targets in Q1. On the other hand, none of them met offtake targets. Odisha-based Mahanadi Coal Fields Limited (MCL) saw the highest growth in both production and offtake, which rose by 13 per cent and 8 per cent, respectively.
The public sector utility reported consolidated earnings before interest, taxes, depreciation, and amortisation (Ebitda) of Rs 14,339 crore in the reporting quarter, while margins stood at 39.3 per cent.
Total expenses during the quarter held steady, rising by a marginal 0.72 per cent to Rs 24,287 crore. The largest component of CIL's expenditure, employee benefit expenses, shrank 4.7 per cent to Rs 11,454.5 crore. The PSU is among the top 10-largest employers in India and had 2.25 lakh employees on its payroll at the end of Q1, down 4,237 compared to Q1 FY24.
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Meanwhile, total capital expenditure rose 3 per cent to Rs 3,331.4 crore in Q1. The company's overall market cap stood at Rs 2.91 trillion at the end of Q1, up 9 per cent year-on-year from Rs 2.67 trillion. CIL had registered a 17.8 per cent jump in its annual net profit for FY24, which rose to Rs 37,369 crore.