Coal India Q2 Net Slumps 77% On Higher Expenses, Decline In Sales

New Delhi: State-owned Coal India on Tuesday reported a massive 77 per cent fall in its consolidated net profit at Rs 600 crore for the quarter ended September, hit by drop in sales and higher expenses.

The PSU major had posted a consolidated net profit after tax, minority interest and share of profit of associates of Rs 2,654 crore in the July-September period of the previous fiscal, Coal India (CIL) said in a filing to the BSE.

Consolidated net sales of the company during the July-September quarter stood at Rs 15,645 crore, registering a decline of 8 per cent.

Total income from operations (net) declined to Rs 16,212.5 crore, over Rs 17,489.8 crore in the year-ago period.

Total expenses of the company increased to Rs 16,161.9 crore, over Rs 14,733 crore in the corresponding quarter of the previous fiscal.

On standalone basis, CIL net profit during July-September period declined to Rs 1,097.5 crore as against Rs 1,245.7 crore in the year-ago period.

Standalone total income from operations (net) in the July-September quarter increased to Rs 81.2 crore over Rs 48.6 crore in the corresponding quarter of previous fiscal.

CIL's coal output in the April to September period of 2016 was at 230 million tonnes (MT), against 229.5 MT in the same period of 2015.

While the coal offtake of the PSU in April to September period of 2016 declined to 249 MT, against 251 MT in the same period of 2015.

CIL, which accounts for over 80 per cent of the domestic coal production, is eyeing 598 million tonnes production in 2016-17 and targeting to produce one billion tonnes of the fossil fuel by 2020.