NEW DELHI: Public sector mining major Coal India Ltd (CIL) on Wednesday reported a 16.3 per cent decline in consolidated net profit at Rs 2,948.12 crore for the quarter spanning July to September 2020.
According to officials, the decline was primarily to a sharp increases in the company’s expenses during the period. The company had posted a profit of Rs 3,522.70 crore in the July-September period of the previous financial year.
According to the documents filed with the stock exchanges, the company’s income during the quarter marginally increased to Rs 22,237.82 crore from Rs 22,012.94 crore in the year-ago period, but expenses rise much fast to Rs 18,177.82 crore from Rs 17,734.44 crore.
In a separate filing, the company also pointed out that its Board of Directors has approved the payment of an interim dividend of 7.50 per share of the face value of Rs 10 for the current financial year 2020-21. Meanwhile, the company's production for the quarter increased to 114.98 million tonnes (MT) from 103.99 MT in the corresponding quarter of the previous year.
The offtake of raw coal by the company also increased to 133.96 MT during the quarter, from 122.44 MT in the year-ago period. CIL accounts for over 80 per cent of domestic coal production.
In yet another stock echange filing, the company also said that it has incorporated a joint venture company in the name of Coal Lignite Urja Vikas Pvt Ltd. According to the Centre, CIL will pump in over Rs 1.22 lakh crore in projects related to coal evacuation, exploration and clean coal technologies by 2023-24, in order to achieve the 1 billion tonne of fuel output target.
Out of the proposed spend of over Rs 1.22 lakh crore, CIL has planned to invest Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure and Rs 29,461 crore on project development by 2023-24, the coal minister had said.