CIL posts 64 per cent rise in Q1 net profit

State-run Maharatna Coal India Ltd (CIL) has posted a 64 per cent rise in consolidated net profit to Rs 4,143.92 crore for the first quarter of the financial year ended on June 30, as against Rs 2525.88 crore during the same period of the last financial year.

The company’s net sales for the period under review also zoomed 26.8 per cent to Rs 14,499.08 crore, as compared to Rs 11,435.64 crore during the first quarter of the financial year 2010-11. Meanwhile, the coal production for the quarter showed only a marginal rise of 1.21 per cent to 96.3 million tonne as against 95.15 MT during the same period last fiscal. Coal offtake also increased 5.15 per cent to 106.25 MT, compared to 101.05 MT during the last year.

Out of the total sales of Rs 14,499.08 crore, Rs 3,041 crore came from e-auction only. Allocation of coal through e-auction during this quarter was about 11.39 MT, against 9.3 MT during the same period last fiscal. “From last April to June, we got an advantage due to price rise. The total profit due to increase in price rise was above Rs 2,500 crore,” said N C Jha, chairman and managing director of the company.

However, Jha added that the targetted production this quarter was about 98.66 MT and because of early monsoon in Eastern India, there was a shortfall of 2.33MT. “We are hopeful that the production will pick up in coming quarters and we will be able to achieve the targeted production of 452 MT this financial year,” he said.

Will look into price rise in another 6 months
Jha indicated that the firm will look into rise in coal prices in another six months, as wage rise is on the cards. “A joint committe on wage revision is set to meet by the end of this month. But it would take atleast another six months for the whole process to happen. So, we would look into whether a price rise is needed depending on the wage negotiations ahead,” he said.

Meanwhile, he said that the fiscal would be bright as the firm is expected to see a 4.8 per cent growth in production and 8.5 per cent rise in offtake during this financial year.

Plans 20 new washeries
The Kolkata-based company is planning to set up 22 new washeries at an investment of Rs 4200 crore, as the second phase of its long term plan to shift to washed coals. “We are on the process of identifying the locations. If things go according to plan, in another eight years, 45 to 50 per cent of the total produced coal would come from washeries,” Jha said.