Coal India FY11 net rises 24% to Rs 4,696 cr

Maharatna PSU Coal India (CIL) today reported 24.2% rise in standalone net profit at Rs 4,696 crore for 2010-11 on account of increase in sales and dividend from subsidiary companies.

The public sector firm had a net profit of Rs 3,779 crore in 2009-10, the company said in a statement.

Total Income has increased to Rs 5,498 crore for the year ended March 31, 2011 from Rs 4,593.44 crore for the year ended March 31, 2010, it said.

"The overall result of the company has been very good. There has been almost 22% increase in profit after tax. Good results could be attributed to various reasons like our stocks were sold very well. Moreover, there had been increase in sales," Coal India Chairman NC Jha said.

"The dividend from our subsidiary coal companies, to the tune of about Rs 880 crore, has also increased. As a result our company's performance has been good in the last financial year," he added.

Jha said other contributing factors behind profit included less expenditure, the reduction in manpower and no wage increase.

CIL recommended total dividend of Rs 3.90 per share, including interim dividend of Rs 3.50 per share.

CIL shares closed at Rs 381.30, down 0.63% from the previous close on the Bombay Stock Exchange.