CIL net profit tanks 21% as contractual expenses soar

NEW DELHI:  State-owned Coal India Ltd (CIL) on Thursday reported a sharp 21.3 per cent decline in its consolidated net profit for the third quarter, at Rs 3,085.4 crore compared to a net profit of Rs 3,923.87 crore for the corresponding period. 

The company took a hit from a sharp rise in contractual expenses, details filed with the stock exchanges showed, increasing by 18.4 per cent during the period to Rs 4,351.5 crore. Further denting its bottom-line, the coal miner’s other income for the quarter also dived 54 per cent on a year-on-year basis to Rs 648.59 crore. 

The company’s consolidated revenues for the quarter, however, rose 2.1 per cent to Rs 23,686 crore, while total income during period slipped marginally to Rs 24,334.62 crore from Rs 24,602.19 crore the previous year. Consolidated expenses rose 1.7 per cent to Rs 19,592.6 crore. Meanwhile, production during the quarter increased to 156.78 million tonne (MT) from 147.50 MT last year. 

In a separate filing, CIL said its board has accorded approval for the incorporation of two wholly-owned subsidiaries, one for solar value chain (Ingot-wafercell-module) business vertical and another for new and renewable energy. However, this nod is subject to the approval of the government.

The company will pump over Rs 1.22 lakh crore in projects related to coal evacuation, exploration and clean coal technologies by 2023-24, and targets achieving 1 billion tonne of fuel output within that time-frame. Of this, CIL has planned to invest Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure, among others.

Rs 1.22 L cr CIL’s proposed investment

ITC Q3 profit falls 11.4% to Rs 3,587 cr
India’s largest cigarette maker ITC reported a 11.4 per cent decline in net profit for the quarter ended December to Rs 3,587.09 crore impacted by slower revenue growth and weak operating performance in cigarette business. Consolidated profit in the corresponding period stood at Rs 4,050.4 crore. Consolidated revenue from operations grew by 6.1 per cent to Rs 14,124.48 crore in Q3FY21, with cigarette business showing 2.5 percent YoY growth in operating revenue. The company reported revenue from its cigarette business, which contributed 43 percent to total business, at Rs 6,091.17 crore for December quarter.