Coal India Edges Lower On Manpower Restructuring Plans

Coal India shares have edged lower in a soft market a day after the world’s largest mining company announced plans to improve productivity and reduce operational costs. In an earnings call on Tuesday, Coal India said that it would reduce its manpower by 5 per cent each year for the next 5-10 years to improve productivity and reduce operational costs. Coal India has 2,72,445 employees as of financial year 2020. At 11:00 am, Coal India shares were trading lower by 0.6 per cent at ₹ 156 on the BSE.

Coal India has also decided to close unviable mines, as part of its cost-cutting efforts. As many as 158 underground mines employ 43 per cent of the workforce and contribute a mere 5 per cent of the company’s total production. And production in 11 such mines has already been suspended, according to Coal India.

Meanwhile, on Monday, Coal India reported a 0.8 per cent decline in consolidated net profit at ₹ 4,588.96 crore for the quarter ended March 31, 2021 and announced a final dividend of ₹ 3.5 per share, taking its total payout in FY2021 to ₹ 16 per share.