MUMBAI: National miner Coal India has reported 32 percent plunge in consolidated net income at Rs 4,262.64 crore in the second quarter of the financial year, down from Rs 6,274.8 crore in the same quarter last year. Sequentially, profit tumbled 52 percent from Rs 8,734.17 crore.
The world's largest coal-producing company attributed the steep decline in bottom line to the poor sales and increased expenses. Sales contributed a total of Rs 26,909.23 crore to revenue, down marginally from Rs 27.271.3 crore. Revenue from operations stood at Rs 30,186.7 crore, down 3.2 percent on-year and 15.8 percent sequentially, the company said in exchange filing Wednesday.
The world's largest coal-producer reported a 7.1 percent increase in its total expenses to Rs 26,421.86 crore from Rs 24,670.70 crore in the same quarter last year. On a sequential basis, expenses increased by 3.6 percent from Rs 25,493.12 crore.
Operating margin contracted by 584 bps to 22.25 percent. Despite the poor numbers, the board declared an interim dividend of Rs 10.25/share with a record date of November 4, and payments to be made by November 28.Earlier this month, CIL reported a 3.9 percent drop in coal production for September, falling to 48.97 million tonne from 50.94 mt in the same month last year.
The decline was despite government’s ongoing efforts to boost domestic coal output and reduce imports. Coal minister G Kishan Reddy attributed the fall to heavy rainfall in the month, which disrupted mining operations at the state-owned producer.