Coal India net profit rises 62% to record Rs 28,125 crore in FY23

National miner Coal India’s (CIL’s) profit for the financial year 2023-24 increased 62 per cent year-on-year (YoY) to an all-time high of Rs 28,125 crore, riding on the back of high production and sale of coal. 

The company’s profit during the fourth quarter, however, slid by 18 per cent to Rs 5,528 crore, owing to an increased provision towards wages, CIL said. 

“CIL lifted its profit into higher orbit despite the company capping its coal prices for over the past five years amidst rising input costs, especially diesel and explosives, and increased wage cost due to provisioning in the accounts,” CIL said in a public statement. 

The company’s net sales were the highest ever for the fourth quarter as well as for the entire FY23. Net sales at Rs 35,161 crore in Q4 were up 17 per cent over the year-ago period. For FY23, CIL’s net sales was Rs 1.27 trillion, a jump of 27 per cent compared to Rs 1 trillion in FY22, it said. 

The company’s board that met on May 7 recommended the payment of a final dividend of Rs 4 per share. Earlier in two tranches in FY23, a total dividend of Rs 20.25 per share was already paid out, it said. 

In FY23, CIL touched a record coal production of 703 million tonne (mt). It is aiming to produce 780 mt in FY24. Higher volume sales by 17.34 mt and better average realisation under fuel supply agreement (FSA) resulted in a net impact of around Rs 3,879 crore in Q4, CIL said. 

The sale of coal under FSA increased to 167.45 mt in Q4 compared to 150.11 mt in the year-ago quarter. Realisation per tonne of coal under FSA increased 6 per cent to Rs 1,550 per tonne in Q4 from Rs 1,470 a tonne in Q4FY22. 

Through e-auction sales, the company sold 16.40 mt of coal, which is lower by 41 per cent over FY22. The realisation per tonne of coal was Rs 4,526 under auction segment in Q4 against Rs 2,434 in the same quarter of FY22. The jump was Rs 2,092 per tonne or 86 per cent.