 "What's led Coal India stock to drop 6% in trade post Q2 results; Details")
Coal India shares lost 5.6 per cent in early trade on Monday, October 28, and registered an intraday low of Rs 435.2 per share on BSE. The selling pressure came in the stock after the company reported mixed second quarter (Q2FY25) numbers.
At around 10:48 AM, Coal India shares were down 3.08 per cent at Rs 446.95 per share. In comparison, the BSE Sensex was up by 1.11 per cent at 80,287.27 at around the same time. The market capitalisation of the company around the same time stood at Rs 2,75,381.52 crore.
State-owned Coal India reported a 22 per cent decline in consolidated profit at Rs 6,274.80 crore for the quarter ended September 30, 2024, on the back of lower sales, after market hours on Friday.
The company had posted a consolidated net profit of Rs 8,048.64 crore in the year-ago period.
The company's consolidated income in the July-September period dropped to Rs 32,177.92 crore, lower than the Rs 34,760.30 crore it had reported in the second quarter of the previous fiscal.
Its consolidated sales during the quarter under review slipped to Rs 27,271.30 crore as compared to Rs 29,978.01 crore year-on-year (Y-o-Y).
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Additionally, Coal India posted a 10 per cent rise in its coal output at 773.6 million tonnes in the 2023-24 fiscal year. However, the output fell short of its 780 MT production target for the 2023-24 financial year.
It had produced 703.2 million tonnes (MT) of coal during the preceding 2022-23 fiscal.
The company's board approved the closure of Coal India Solar PV Ltd (CSPL), a subsidiary of the company. The closure of CSPL is expected to be completed within a period of 8-10 months.
"We wish to inform you that, the Board of Directors of the Company at its meeting held on October, 25 2024, had interalia, approved the closure of CIL Solar PV Limited (CSPL), a wholly-owned subsidiary of the company," the filing read.
Citing the reasons for the closure the company in its filing said, "Central Public Sector Enterprises (CPSEs) are restricted to procure cheaper alternative Solar PV manufacturing technologies from countries sharing land borders with India, including China, which results in an uneven playing field by making an impact on the feasibility of the project."
Coal India dividend
The company's board also declared the first interim dividend for 2024-25, at Rs 15.75 per share.
In the past one year, Coal India shares have gained 46.88 per cent against Sensex's rise of 24.4 per cent.