Coal India Q2 net profit falls by 28% due to higher expenses

Coal India's production however increased by 5% at 102.42 million tonnes during the second quarter of this year

Coal India on Saturday reported over 28 per cent fall in its consolidated net profit to Rs 2,192 crore in the September quarter of this financial year due to higher expenses.

The world's largest coal miner had clocked a profit of Rs 3,052 crore in the same quarter previous year, the company said in a BSE filing.

Its net profit took a beating as the company's expenses rose by almost eight per cent as compared to the flat growth in sales.

Total expenses increased to Rs 14,144 crore in the July-September quarter of this year from Rs 13,112 crore in the same period last year.

The bulk of the expenses were on employee benefits, on which the company spent Rs 7,286 crore, while contractual expenses went up to Rs 1,626 crore from 1,393 crore.

Its net sales increased marginally to Rs 15,677 crore from Rs 15,411 crore in the review period.

Coal India's production increased by 5 per cent at 102.42 million tonnes during the second quarter of this year, compared ot 97.60 million tonnes.

Offtake was 110.42 million tonnes compared with 109 million tonnes in review period.

The miner accounts for over 80 per cent of domestic coal production. Its output stood at 462.42 million tonnes in the previous year.

DIGGING DEEPER INTO THE PIT

• Coal India, the world's largest coal miner, had clocked a profit of Rs 3,052 crore in the same quarter previous year
   
• Its net profit took a beating as the company's expenses rose by almost eight per cent as compared to the flat growth in sales
   
• The bulk of the expenses were on employee benefits, on which the company spent Rs 7,286 crore, while contractual expenses went up to Rs 1,626 crore from 1,393 crore