Kolkata: Coal India on Wednesday reported a decline of 11.4 percent in consolidated net profit to Rs 3,894.09 crore in the quarter ended December 31 on lower e-auction realisation and quantity.
The city-headquartered PSU had clocked a profit of Rs 4,395.11 crore in the corresponding quarter of the previous financial year.
Net sales during the October-December quarter declined 2.3 percent to Rs 16,928.13 crore from Rs 17,325.04 crore in the year-ago period.
"Profit is lower due to low sales, increase in general cost, inflationary pressure and low realisation from e-auctions during the quarter," Coal India Chairman S Narsing Rao told reporters here.
The higher e-auction quantity by 50 percent to 15.14 million tonnes (MT) during the quarter saved the company from further drag on profits. In the corresponding period last year e-auction sales was 10.48 MT.
E-auction price is much higher than notified coal.
However, the realisation from e-auction had declined further to Rs 2,232 per tonne during the quarter under review against Rs 2,941 per tonne realised during the Q3 period of FY'13 due to lower demand.
Average realisation of all coal sold was higher at Rs 1,448 per tonne during the quarter, higher by Rs 16 per tonne over the corresponding period last year when it was Rs 1,432 per tonne.
The volume of sales was 117.16 MT during the quarter, down from 120.45 MT during same period a year ago.
Rao said offtake was low from Gujarat and Haryana during the last quarter.
Total expenses were Rs 13,266.23 crore compared to Rs 13,457.16 crore a year earlier.
The company's coal production increased to 118.71 MT in the quarter from 117.37 MT.
Rao said the company had a pit head stock 38 MT and for the entire year the stock was expected to increase to 45-47 MT.
Asked whether the Rs 18,000 crore dividend would have any impact on long-term capital expenditure (capex) plan, Rao said, "No, there will be no problem for the next 10 years. Currently, our average capex plan is Rs 5,000 crore a year for the rest of the 12th plan period."
Coal India accounted for over 80 percent of the country's total output of the fuel and has fulfilled the FSA target for the power sector during the quarter.
Coal India shares were little changed at Rs 269.90 at the close on the BSE, before the earnings were announced.
First Published: Wednesday, February 12, 2014, 21:24