Coal India profit up 13% on e-auction, higher sales

Coal India Ltd (CIL) has posted a 12.9 per cent rise in consolidated net profit for 2010-11 to Rs 10,867.5 crore compared to Rs 9,622.5 crore in the last year. Net sales for the year also increased to Rs 50,233.6 crore, posting a 12.6 per cent rise of Rs 44,615 crore.

“Our growth during the period was boosted by increased revenue from e-auction and up to an extent price increase also helped it. Of Rs 50,233.6 crore from net sales, the e-auction revenue is around Rs 8,810 crore while Rs 2,212 crore is through MoU sales,” said A K Sinha, director (finance). The year marked the debut of the company in capital markets and its rise as one of the largest companies in terms of market capitalisation.

The world largest coal producer is, however, set to import coal during this year. The production this financial year stood 431.3 million tonne (mt) compared to 431.3 mt with an increase of 0.01 per cent. The coal off take for the year increased 2.01 per cent to 424.5 mt against 415.88 mt.

“Though the offtake increased a bit, production stood at last years' level. This was mainly due to factors like not getting environmental clearances and law and order problems in Orissa and Jharkhand. Our stock build up now stands at 70 mt and this year the focus would be on the off take,” said N C Jha, chairman and managing director.

“We are looking forward to import coal from this year. Already, NTPC has promised us verbally to take 10 mt of coal. So surely, the demand is there and we will have to import,” he said.

The state-run coal major is currently supplying 125 mt to NTPC on an year-on-year basis, which include some new plants which came up in March 2011.

The company’s net profit in 2010-11 fourth quarter stood at Rs 4,220 crore, a rise of 60.7 per cent compared to Rs 2,626 crore in the third quarter. “Since the company was not listed last year, we will not be able to reveal the fourth quarter numbers of last year,” Jha said.

The company’s stocks ended up seven points with 1.8 per cent rise at Rs 377. 4, against the previous close of Rs 370, on the Bombay Stock Exchange as investors expected good fourth quarter numbers. The day also saw the stocks hitting a weekly high of Rs 384.9.

The company’s total cash balance for the period is around Rs 43,000 crore and a net worth of Rs 33,316 crore.

“For the current financial year, the company is planning to earmark about Rs 6,000 crore for acquisitions,” said Jha.