Coal India Q1 results: Firm's net profit soars 178% to Rs 8,834 cr

The company's consolidated revenue from operations rose 39% to Rs 35,092 crore in Q1FY23

Coal India on Wednesday said its consolidated net profit shot up 178 per cent to Rs 8,834 crore for the first quarter of the 2022-23 fiscal on the back of higher sales.

The miner posted a net profit of Rs 3,174 crore in the same quarter last year. The company said in a regulatory filing on Wednesday that its sales were 39 per cent higher at Rs 32,498 crore during the quarter under review, as against Rs 23,293 crore registered in the corresponding period of FY22 (Financial year 2021-22).

Coal India was successful in keeping the total expenses at Rs 23,985 crore amid higher production and despatches during the quarter versus Rs 21,626 crore in the June quarter last year.

The cost of materials consumed rose to Rs 3,057 crore in the quarter under review from Rs 1,843 crore in the year-ago period.

Contractual expenses were higher at Rs 5,565 crore during the three months ended June 30, 2022, as against Rs 4,022 crore in the corresponding quarter of the previous year.

The miner was able to fetch Rs 4,340 per tonne from e-auction coal sales, and it sold nearly 21 million tonne through this route during the April-June 2022 quarter.

The miner experienced an enhanced demand for the thermal power sector which faced a shortage of fuel owing to sudden surge in electricity consumption. It sold nearly 154 million tonne of coal to the regulated sector during the April-June 2022 quarter.

The price realisation through FSA (Fuel Supply Agreement) route was Rs 1,442 per tonne.

The company's output in the April-June period increased to 159.75 million tonne from 123.98 million tonne in the corresponding quarter of the previous fiscal.

The offtake was higher at 177.49 million tonne during the quarter as against 160.44 million tonne in the year-ago period.

Coal India accounts for about 80 per cent of domestic coal output. The company was aiming at 700 million tonne of production this fiscal and one billion tonne by 2023-24.

Shares of the company settled at Rs 219.85 apiece on BSE, up 2.02 per cent from the previous close.