Coal India reports flat Q2 performance, misses market expectations

The miner has informed the exchanges that it has not yet been able to constitute the audit committee since it has appointed independent directors on November 1.

Coal India (CIL) reported a flat financial performance for the second quarter of the current fiscal, much below the market expectations with net profit at Rs 2,932.73 crore against Rs 2,951.60 crore during the corresponding period last fiscal. Although total income for the period grew 8.25% to Rs 24,072.83 crore, expenses were up more than 12%, at Rs 20,424.52 crore leading to a 10% decline in profit before tax (PAT).

The PSU miner’s PAT for the quarter to September during the current fiscal was at Rs 3,643.24 crore, against Rs 4,060.79 crore during the same period a year ago.
The company reported a flat financial performance despite e-auctions sales remaining upbeat between June and September. CIL’s total income for the quarter grew on the back of sudden demand surge from August after a spree of regulated intake from the power sector between November 2020 and June 2021. The power sector accounts for 80% of CIL’s coal intake.

However, the company’s revenue from operations for the quarter increased 10% at Rs 23,291.08 crore against Rs 21,153.07 crore during the corresponding last fiscal.
For the half yearly period CIL’s net profit at Rs 6,106.88 crore increased 21% on a total income of Rs 50,035.96 crore, registering a year-on-year growth of 20.54%. Profit before tax for the period at Rs 7,978.81 crore witnessed an above 16% growth though expenses at Rs 42,051 crore were higher by 21% compared to the expenses incurred during the six months period last fiscal.

Although earning per share at Rs 4.77 for the quarter to September remained flat, for the half yearly period ending September it grew to Rs 9.91 from Rs 8.16 during the same period a year ago.

The miner has informed the exchanges that it has not yet been able to constitute the audit committee since it has appointed independent directors on November 1. The firm has appointed six independent directors.