With months to go before its initial public offering (IPO), state-owned Coal India (CIL) on Tuesday said that its profit after tax had jumped 300 per cent to Rs 8,312 crore last fiscal, compared to Rs 2,078 crore during 2008-09.
In 2009-10, the firm's coal production increased by 6.8 per cent, the highest so far, to 431.27 million tonnes (MT) against 403.73 MT in the 2008-09 fiscal. CIL's gross sales also rose by 13.74 per cent from Rs 45, 797 crore in 2008-09 to Rs 52, 088 crore last financial year.
However, the raw coal offtake during the same period only increased 3.6 per cent owing to a paucity of rakes. “Only about 2.2 MT of coal could be moved through Railways out of the incremental offtake of 14.50 MT,” CIL Chairman Partha S Bhattacharyya said.
For the second time since the formation of CIL in 1975, all its subsidies, including Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL) have reported profits. “Fundamental changes have been made in these companies. While BCCL's production increased by 2MT, that of ECL rose by 1.87MT. However, without the increase in coal prices that happened last year, they would not have been able to make profits,” Bhattacharyya explained.
As for its listing time line, Bhattacharyya said that 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.
However, Bhattacharyya stressed that the miner's valuation for the bourses should take into account its attempts for downsizing its workforce as well as the ongoing programme to induct larger number of coal washeries for improving the quality of the fuel provided to consumers. “Also, no other coal company has proven reserves to the tune of 63 billion tonnes,” he said.
...considering overseas foray
CIL on Tuesday said that it was considering equity or joint ventures with three foreign listed firms for overseas ventures, with an eye on procuring coal for the domestic market at lower prices. “We have received five proposals for projects in Australia, Indonesia and the US. The proposals entail investments in the range of $ 1.8 billion for about 281 million tonnes (MT) over a period of 10 years,”CIL Chairman Partha S Bhatta-charyya said. This fiscal, CIL has earmarked about Rs 6,000 crore for its overseas plans.
