CIL Q4 dips 5% to Rs 4,013 cr on higher provisioning
Kolkata: State-owned Coal India Ltd (CIL) Monday reported a 4.9 percent decline in consolidated net profit at Rs 4,013 crore for the fourth quarter ended March 31, due to higher provisioning for wage hike.
The company announced a net profit of Rs 4,220 crore for January-March quarter in FY 2010-11.
"Higher provision had a direct impact on the fourth quarter reducing profits by 5 percent. Outgo was about Rs 5,000 crore during the last three quarters against estimated provision of Rs 3,000 crore," CIL Director-Finance A K Sinha told reporters.
CIL's employee benefit expense for fourth quarter ended March 31, increased substantially to Rs 9,068 crore over Rs 4,806 crore in the same quarter in FY'11.
The income from operations of the public sector firm for the quarter, however, increased to Rs 19,418 crore over Rs 15,004 crore for the same period a year ago.
The consolidated net profit of the PSU firm for the year ended March 31, was higher at Rs 14,788 crore compared to Rs 10,867 crore in 2010-11, due to an increase in price.
The company had produced 435.8 million tonnes (MT) of coal in the last fiscal, over 431 MT in 2010-11.
"The rise in net profit during the year was mainly due to an increase in price,” CIL Chairman and Managing Director S Narsing Rao said.
The interest income for the year jumped to Rs 5,345 crore as against nearly Rs 2,950 crore interest earned in 2010-11.