Profit down by over 50% in 7 years: Coal India's future looks bleak

Net worth, profits continue to fall as Coal India battles higher wages, rising coal demand

High labour cost, delay in supply chain process and burgeoning cost of opening new mines (due to surging rehabilitation expenses) are threatening to put a dent on the profit of Coal India, which enjoys a monopoly in the sector. 

In January, Mahanadi Coalfields Limited (MCL) — one of the best-performing subsidiaries of Coal India — said work stoppages due to labour unrest at its mines was highest ever in this fiscal. MCL said this led to a production loss of 4.86 million tonnes in the first three quarters of this fiscal year.