Increased payout to employees drags down Coal India's Q4 profits

Sector analysts expect coal demand in the country to grow at 6.8 per cent which is in line with the projected demand growth of thermal power

Higher sales, an increase in coal prices and the imposition of evacuation facility charges helped Coal India post a Rs 269.09 billion topline for the quarter ended March 31, 2018 even though its net profit tanked by 52.37 per cent at Rs 12.95 billion. 

The sharp dip in net profit, as per Coal India officials, is on account of providing for a one-time transitional effect of increase in gratuity amounting to Rs 73.84 billion. Taking this into consideration, the gross profit of the company stood at Rs 107.26 billion in comparison to Rs 42.81 billion on a year-on-year comparison.

Its topline in