Coal India profit rises 148%

Better realisation, cost control boost performance

Coal India Ltd. closed 2018-19 with a 148% rise in its post tax profit to ₹17,462.2 crore on a net sales of ₹92,896.1 crore against ₹82,487.9 crore a year ago. All the subsidiaries of CIL earned profits during the year.

An official said that better average realisation in both FSA (fuel supply agreement) and e-auction sales, coupled with operation cost control, led to the company’s record performance. Coal quality variance was also under control and grade slippages were arrested, the official said.

CIL produced 606 million tonnes of raw coal during the year against 567.4 million tonnes in 2017-18. Offtake stood at 608.1 million tonnes against 580.3 million tonnes. CIL, a listed entity, produces about 80% of the country coal.

During the fourth quarter, profit after tax was 362 % higher at ₹6,024.2 crore. Average realisation per tonne of coal in FSA sales during 2018-19 was 8% higher at ₹1,348.

Employee cost dropped by ₹3,851 crore in 2018-19. This was mainly on account of the ₹7,000 crore one-time provision that had to be made in 2017-18 due to the rise in gratuity ceiling, sources said.

They said that the CIL subsidiaries were all in the black due to the control on grade slippages and other costs. Contractual production rates were also kept under tight control, it was learnt.

In 2018-19, four subsidiaries — Eastern Coalfields, Central Coalfields, Northern Coalfields and Western Coalfields — surpassed their production targets while South Eastern Coalfields became CIL’s first subsidiary to surpass the 150-million-tonne production mark. ECL and WCL became 50 million tonne-plus companies for the first time.

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