CIL net up on sales growth

On the back of a higher offtake growth and lower wage bill, state-owned Coal India (CIL), today reported a 35 per cent rise in consolidated net profit to Rs 5,414 crore for the quarter ended March, compared with Rs 4,013 crore a year ago.

Net sales rose 2.5 per cent to Rs 19,905 crore over Rs 19,419 crore reported in the year-ago period. "The offtake for the quarter stood at 129.95 mt, against 122.8 mt. Higher offtake in the quarter has contributed to the net profit growth," Chairman S Narsing Rao said.

Also, CIL's wage bill during the quarter went down by about Rs 2,000 crore in the absence of a one-time employee benefit that the company had to bear due to wage hike in the corresponding quarter of the previous financial year. The employee benefit expenses for the quarter stood at Rs 7,469 crore, compared to Rs 9,466 crore a year ago.

The lower wage bill combined with higher offtake helped CIL registered a significant rise in net profit in the quarter, despite marginal decline in net sales realisation in the quarter at Rs 1,511 per tonne, against Rs 1,530 per tonne in the corresponding period.

According to Rao, decrease in e-auction as the supply under fuel supply agreement went up in the period, resulted in decline in net sales realisation.

Mulls increase in coal price
CIL might increase price of coal in the coming months on the back of a rise in diesel prices. The board today discussed the possible increase in the commodity's prices in the current quarter itself to generate additional Rs 2,100 crore