Coal India's Q2 profit rises 12.5% YoY to Rs. 6,813cr
What's the story
Coal India Limited (CIL) saw a 12.5% increase in consolidated net profit, reaching Rs. 6,813 crore in Q2 FY24, compared to Rs. 6,043.5 crore during Q2 FY23.
This growth was fueled by higher sales and a significant profit contribution from CIL's joint ventures (JVs), which amounted to Rs. 89.75 crore this quarter, compared to a negative Rs. 140.75 crore in the same quarter last year.
The company's board also announced an interim dividend of Rs. 15.25 per share for FY24.
Details
CIL's revenue from operations rose nearly 4% YoY
CIL's revenue from operations rose nearly 4% year-on-year (YoY) to Rs. 3,277 crore.
The mining firm's consolidated sales also increased to Rs. 29,978.01 crore in the July-September period from Rs. 27,538.59 crore in the corresponding period of the previous fiscal year.
Earnings before interest, tax, depreciation, and amortization (EBITDA) expanded 12% to Rs. 10,121 crore in Q2 of this fiscal over Rs. 9,040 crore in the year-ago period.
EBITDA margin increased to 29.1%, up from 28.6% last year.
What Next?
Various factors affected the financial results of Coal India
In Q2 FY24, CIL's total expenses rose 9% to Rs. 26,000.05 crore from Rs. 23,771.02 crore in the corresponding quarter of the previous fiscal, primarily because of higher wage expenses and lower e-auction prices.
Raw coal production during the quarter reached 157.426 million tons, up from 139.228 million tons in the same quarter last year.
Insights
CIL's financial results aligned with Street estimates
On November 10, Coal India's shares closed flat at Rs. 323.45 apiece on BSE. The company is responsible for over 80% of domestic coal production.
Raw coal off-take was at 173.731 million tons, compared to 154.533 million tons in the year-ago quarter.
The company's financial results aligned with Street estimates, and its board has set Tuesday (November 21) as the record date for the interim dividend, according to a regulatory filing.