June 26, 2020

Profit drops 4.3% to Rs 16,714 crore, sales down 4%

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State-owned Coal India has closed financial year 2019-20 with consolidated net profit of Rs 16,714.19 crore, down 4.3 per cent, compared to Rs 17,463.07 crore in 2018-19. For the January-March quarter of FY20, the consolidated net profit fell by 23 per cent year-on-year to Rs 4,625 crore. The country’s largest coal-producing company had posted a net profit of Rs 6,026 crore in the same quarter of the last fiscal, Coal India said in a regulatory filing.

Consolidated revenue of the company decreased to Rs 1,02,185.74 crore in FY20 as compared to Rs 17,05,422.67 crore in FY19. During the March quarter of FY20, consolidated revenue fell 3.56 per cent YoY to Rs 27,568.23 crore.

The company’s sales fell by 4 per cent to Rs 25,597 crore during the March quarter of FY20 as compared to Rs 26,704 crore in the same quarter of FY19, impacted by nationwide lockdown to contain the spread of coronavirus. For FY20, sales were down 3.79 per cent at Rs 89,373.34 crore as compared to Rs 92,896.08 crore in FY19.

Revenue from operations declined by 3.6 per cent to Rs 27,568.23 crore during the quarter under review.

EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) fell 18.3 percent YoY to Rs 6,728.8 crore and margin dropped by 440 basis points to 24.4 per cent in Q4 FY20.

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Total expenditure stood at Rs 78,113.25 crore in FY20 versus Rs 7,293.80 crore in FY19. For Q4 FY20, it was at Rs 22,033.90 crore as against Rs 21,471.78 crore in the year-ago period.

On the production front, Coal India’s output rose 10 per cent YoY to 213.7 million tonnes in Q4 FY20, while off-take volume remained flat at 163.87 million tonnes.

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On COVID-19 outbreak, Coal India said it has caused significant disturbance and slowdown of economic activity in India and across the globe. “The company has evaluated impact of this pandemic on its business operations. Based on its review and current indicators of economic conditions, there is no significant impact on its financial results and carrying value of assets,” it said.

The company further stated that it will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

Ahead of earnings announcement, shares of Coal India settled Friday’s trade at Rs 141.95 apiece, up 0.82 per cent, against previous closing price of Rs 140.80 on the BSE.

By Chitranjan Kumar

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