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Coal India Q3 Profit Beats Estimates

Coal India’s profit rises 4.2 percent to Rs 3,005 crore in October-December.



A bag of coal sits on the ground as a worker lies on an empty sack during a break at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
A bag of coal sits on the ground as a worker lies on an empty sack during a break at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Coal India Ltd.'s profit beat estimates as the world’s largest coal miner gained from a decline in expenses.

Net profit rose 4.2 percent on a yearly basis to Rs 3,005 crore in October-December quarter as its operating margin expanded, according to its exchange filing. The bottom line exceeded the Rs 2,698 crore estimate by analysts tracked by Bloomberg.

The Kolkata-based company's profit was aided by a 5.5 percent fall in overall expenses as the excise duty stood abolished after the introduction of the Goods and Services Tax.

Revenue in the October-December rose 5.7 percent to Rs 21,643 crore, in line with estimates. The state-owned miner, which caters to nearly 70 percent of the demand from power units, increased production in August last year after the stock at thermal units fell its lowest.

Earnings before interest, tax, depreciation and amortisation rose 18.2 percent to Rs 4,617 crore. Ebitda margin jumped to 21.3 percent from 18.5 percent, also surprising the market.

Coal India closed flat on Friday evening at Rs 300 apiece on the BSE. The stock has fallen 6.8 percent over the last 12 months compared to a 19.1 percent rise in the NSE Nifty 50 Index.