CIL Q1 net surges 52% on back of increased demand

CIL reported an earning per share of Rs 5.14 during the quarter against Rs 3.37 during the corresponding period last fiscal.

PSU miner Coal India (CIL) on Tuesday reported a 52% increase in its consolidated net profit for the first quarter of the current fiscal at Rs 3,174.14 crore.

The surge in profits came on the back of improved coal supplies to the power sector, increased realisation from e-auction sales and an overall higher appetite for coal from the start of the fiscal compared with the demand situation during the corresponding period last fiscal.

CIL’s net profit during Q1 in last fiscal was Rs 2,077.51 crore, mainly hit by lower demand from the power sector in the wake of Covid-19.

While total income is up 35% at Rs 25,963.12 crore for the period under review over the same period last fiscal, income from operations increased 36% at Rs 25,282.15 crore for the quarter against Rs 18,486.77 crore during the same period last fiscal.

Expenses were also up 31% at Rs 21,626.48 crore, though it didn’t put any negative impact on the company’s net profit. The company reported a profit before tax of Rs 3,174.14 crore for the quarter under review against a PBT of Rs 2,800.13 crore during the corresponding period last fiscal, an increase by nearly 55%.

CIL reported an earning per share of Rs 5.14 during the quarter against Rs 3.37 during the corresponding period last fiscal.

It has informed the exchange that the auditors have “conducted limited review” as there is no audit committee as yet. There are no independent directors in the PSU since September 2020. Five independent directors retired on November 2019 and two independent directors retired on September 2020.