BHUBANESWAR: Mining major Coal India Ltd (CIL) on Tuesday said its net profit for the March quarter plunged over 52 per cent to Rs 1,295 crore, from Rs 2,919 crore in the corresponding quarter of last year, mainly due to higher expenses.
The company’s total expenses jumped 24 per cent to Rs 27,757crore, while revenue fell 16 per cent at Rs 26,909 crore against Rs 23,243 crore YoY.
The firm reported weak operational performance as operating profit stood at Rs 195.5 crore against Rs 3,460.5 crore in the year-ago period. Operating margin has also contracted to 0.7 per cent against 14.9 per cent in the previous year.
With an aim to bring down costs to a “bare minimum” level as the sector opens up for commercial mining, the state-run major aims to be the “most-efficient” coal producer.
“We are the world’s largest coal producer, but we wish to be the most-efficient coal miner,” the newly-appointed CIL CMD Anil Kumar Jha said.
He added that, however, it remains to be a challenge to compete with efficient coal players like Australia. “Our socio-economic situation is different. When we open a mine, there is a huge demand for employment. And, the land losers want nothing but employment. The Mahanadi Coalfields Ltd pays a compensation of Rs 16 lakh in lieu of employment, but the villagers demand jobs,” Jha said.