MCL records highest net profit among all CIL subsidiaries

MCL has contributed 48% to CIL's net profit of Rs 14,000 crore for FY17

Coal India arm Mahanadi Coalfields Ltd (MCL) has posted the highest net profit among all the subsidiaries in 2016-17. MCL's profit after tax (PAT) in previous year grew seven per cent from Rs 4207.75 crore to Rs 4491.09 crore.

MCL has contributed 48 per cent to CIL's net profit of Rs 14,000 crore for FY17.

“Despite several operational hindrances, the company witnessed growth in almost all the fields of operations. The company has registered growth in all financials- PBT (profit before tax), PAT, sales, net sales, EPS (earnings before share) as well as physical parameters- coal production, dispatch, over burden removal and FSA (fuel supply agreement)”, said MCL's chairman and managing director A K Jha.

While coal production from MCL grew to 139.2 million tonne, the company supplied record 142 million tonne dry fuel to the consumers, largely the power plants, during the year ended March 31, 2017. Aiming at higher coal production, the company registered 25 per cent growth in overburden removal (OBR) at 123.34 million cubic metres in 2016-17 compared to 98.41 million cubic metres in FY16. MCL's PBT touched a record high of Rs 6853.32 crore in previous financial year, nine per cent higher than Rs 6283.44 crore in 2015-16.

MCL's contribution to the Odisha exchequer spiked by 23.81 per cent from Rs 2550.50 crore to Rs 3157.92 crore. This included Rs 1635.96 crore as royalty, Rs 863.39 as DMF (District Mineral Foundation), Rs 586.46 as sales tax/VAT (value added tax) and Rs 72.11 crore as entry tax or other levies.

MCL was formed in 1992 as the eighth subsidiary of CIL with 23 million tonne coal production. However, with leveraging technology and its environmental-friendly initiatives, like introduction of surface miner for coal production in 1997, MCL on Thursday shoulders the responsibility of supplying more than 20 per cent coal to meet the growing energy demand of India.

The company has been the pioneer among CIL subsidiaries for introducing satellite-based surveillance of its mining operations as well as its free-from-human-interference system of e-procurement.