With months to go before its IPO, CIL on Tuesday said that its profit after tax had jumped 300 per cent to Rs 8,312 crore last year, compared to Rs 2,078 crore during 2008-09.
In 2009-10, its coal production increased by 6.8 per cent, the highest so far, to 431.3 million tonnes, against 403.7 mt in 2008-09. CIL’s gross sales also rose by 13.7 per cent, from Rs 45,797 crore in 2008-09 to Rs 52,088 crore last financial year.
However, raw coal offtake during the period only increased 3.6 per cent, owing to a paucity of (rail) rakes. “Only about 2.2 mt of coal could be moved through the railways out of the incremental offtake of 14.5 mt,” said Chairman Partha S Bhattacharyya.
Moreover, for only the second time since formation of CIL in 1975, all of its subsidiary coal companies, including Eastern Coalfields Ltd (ECL) and Bharat Coking Coal Ltd (BCCL), have reported profits.
“Fundamental changes have been made in these companies. While BCCL’s production increased by 2 mt, that of ECL rose by 1.87 mt. However, without the increase in coal prices that happened last year, they would not have been able to make profits,” Bhattacharyya explained.
On the schedule for listing on the stock markets, Bhattacharyya said the Draft Red Herring Prospectus was to be filed by June 15 and the offer would hit the market by June-end or early August. “The listing process will be completed by August 12,” he added.
He said the valuation for the bourses should take into account its attempts for downsizing its workforce, as well as the ongoing programme to induct more coal washeries for improving the quality of fuel to consumers. “Also, no other single coal company has proven reserves to the tune of 63 billion tonnes,” he said.
For 2010-11, the targets for coal production and offtake are 461.5 mt and 462.5 mt, respectively.
