State-run Coal India Limited (CIL) on Monday announced its net profit for the quarter ended June 30 rose eight per cent to Rs 4,469.3 crore, against Rs 4,143.9 crore in the corresponding period last year. Net sales increased 13.8 per cent to Rs 16,500.6 crore, against Rs 14,499.1 crore during the year-ago period.
Chairman and Managing Director S Narsing Rao said, “This quarter, there was an additional outgo of Rs 1,200 crore because of the new wage agreement. The net impact of National Coal Wage Agreement this financial year would be about Rs 4,800 crore.”
The Maharatna company’s production during the quarter increased 6.4 per cent to 102.5 million tonnes (mt), against 96.3 mt in the Q1 of FY12, while coal off-take rose 6.4 per cent to 113 mt, compared with 106 mt in the year-ago period.
The company’s overburden removal rose 9.3 per cent to 196.47 million cubic metres, against 196.5 million cubic metres in the year-ago period. E-auction sales rose by Rs 412 crore, or 13.6 per cent, to Rs 3,453 crore, compared with Rs 3,041 crore in the corresponding period last year. The e-auction volume, however, saw a fall of 13.48 mt, against 13.54 mt in the year-ago period.
Rao expressed confidence the firm would meet its off-take target of 470 mt for the current financial year. “Though lower rainfall added to productkion and off-take in June, in July, things are changing, as the rainfall is affecting production a bit. But we are confident of achieving the target for the financial year,” he said.
Asked about the fuel supply agreement draft, Rao said it was not yet finalised. He said there would be another board meeting on this soon and if a price pooling mechanism was adopted, it would be in consultation with power firms. Also, the mechanism would be such that CIL would not feel any financial impact, he added.