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Coal India Q2 Results: Profit Falls 7.4% On Rising Expenses

The company's net profit fell 7.4% sequentially to Rs 2,936.9 crore in the quarter ended September.

<div class="paragraphs"><p>A stack of coal at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A stack of coal at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Coal India Ltd.’s quarterly profit fell amid higher operating expenses and drop in revenue.

Net profit fell 7.4% sequentially to Rs 2,936.9 crore in the quarter ended September, the world’s largest coal miner said in an exchange filing. That compares with the Rs 3,048.1-crore consensus estimate of analysts tracked by Bloomberg.

Highlights (QoQ)

  • Revenue fell 7.9% to Rs 23,291 crore, against the estimated Rs 23,751.4 crore. Top line contracted because of lower shipments, which is seasonal.

  • Operating profit fell 18.6% to Rs 3,942.3 crore. Analysts had estimated Rs 4,798.1 crore.

  • Power expenses as percentage of net sales rose to 3.3% from 2.6%.

  • Margin narrowed to 16.9% from 19.2%. The Bloomberg consensus estimate stood at 20.3%.

Other Highlights (QoQ)

  • Raw coal sales volume fell 8.1% to 147.4 million tonnes.

  • Total average realisation fell 0.2% to Rs 1,448 a tonne.

  • Fuel supply agreement realisation fell 0.9% to Rs 1,382 a tonne.