Coal India Q2 Results: Net Profit Declines By 21%, Revenue Drops 6% YoY

Coal India (CIL) disclosed its financial results for the July-September quarter of FY24 on Friday, reporting a 21 per cent decline in consolidated net profit, which stood at Rs 6,289.1 crore, compared to Rs 8,048.6 crore in the same period last year. The state-owned mining giant attributed the profit dip to reduced sales.

Revenue from operations for the Maharatna PSU also declined by 6.4 per cent year-over-year, totaling Rs 30,672.9 crore, down from Rs 32,776 crore in Q2FY23. Coal India, responsible for 80 per cent of India’s coal production, increased output by 10 per cent year-over-year to 773.6 million tonnes (MT) in FY24. However, this fell slightly short of its 780 MT target for the fiscal year.

On the operating front, Coal India’s Ebitda for the quarter dropped 14.2 per cent to Rs 8,617 crore, compared to Rs 10,038.2 crore in the same period last year, with margins contracting to 28.1 per cent from 30.6 per cent. Ahead of the Q2 results, Coal India shares ended 3.36 per cent lower at Rs 461.15 on the BSE.

In other developments, Coal India’s board approved the closure of its subsidiary, CIL Solar PV (CSPL), within 8-10 months, citing procurement restrictions and an uneven playing field due to policies barring solar PV imports from neighbouring countries, including China. CSPL has not engaged in commercial activities since its inception.

CIL also declared a dividend, aiming to reward shareholders amid challenging operational conditions and fluctuating coal demand.