Coal India Q4 Results: Profit Declines 23% On Flat Sales, Lower Realisations
Coal India’s Q4 profit fell 23% year-on-year to Rs 4,638 crore on the back of revenue that decreased 3.5% to Rs 27,568 crore.
State-run miner Coal India Ltd. reported a decline in quarterly profit due to flat sales growth and lower realisations.
Net profit fell 23% year-on-year to Rs 4,638 crore in the quarter ended March, the world’s largest coal miner said in an exchange filing. The consensus of analysts’ estimates compiled by Bloomberg had pegged the metric at Rs 5,024.5 crore.
- Revenue fell 3.5% to Rs 27,568 crore—higher than the estimated Rs 26,596 crore.
- Operating profit fell 18.3% to Rs 6,729 crore.
- Margin narrowed to 24.4% from 28.8% earlier.
During the quarter, Coal India reported sales volume of 164.5 million tonnes compared with 163 million tonnes in the same period a year ago. Volume remained flat particulary due to the lower demand from the power sector in the second half of March as India implemented the world’s harshest lockdown to curb the spread of Covid-19.
The state-run miner had reported a drop in offtake for the first time in 13 years for the year ended March. Production was impacted by the shortage in rake availability, a delay in finalising subcontracts and mining fatalities.
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Shares of Coal India closed 0.82% higher, ahead of the earnings announcement, tracking the benchmark BSE Sensex that closed 0.94% up.