Coal India net plunges 72% in Jan-Mar Qtr

KOLKATA: State-owned Coal India Ltd on Thursday declared a 72 per cent fall in net profit during the quarter ended March 2014 mainly due to falling margins and reduction in realisation from e-auction sales. The company posted a net profit of .`646.1 crore during the quarter, against Rs 2,320.6 crore in the previous corresponding period. Coal India, the world’s largest coal producer, is a holding firm with seven wholly-owned coal mining subsidiaries.

Total income during the period also dropped from Rs 2801.5 crore for the quarter ended March 31, 2013, to Rs 1015.2 crore for the quarter ended March 31, 2014, a fall of 63 per cent. “This has been mainly due to incremental coal from mines going to the power sector where prices are less. Income was low because production slipped due to pollution norms,” said a senior CIL official. The current chairman of CIL, S Narsing Rao, has put in his papers on Monday and is awaiting his release from the ministry. He will be joining as chief advisor to K Chandrasekhar Rao, the chief minister of Telengana, the state to be formed next month. According to officials, AK Dubey, additional secretary at the coal ministry, is likely to take over as the acting chairman of CIL once Narsing Rao is released.

Typically, the selection of CIL chairman is done by the Public Enterprises Selection Board and it takes at least four-five months to scout for a new chairman, during which time the company will be run by an acting chairman. The company has posted a net profit of Rs 15,008.5 crore for the year ended March 31, 2014, againstRs 9,794.3 crore for the year ended March 31, 2013. The rise in profit is attributed to a price hike during 2013 and better production volumes in the first three quarter of 2013-14. Total income has increased fromRs 11,440.2 crore for the year ended March, 2013, to Rs 16,404.10 crore for the year ended March, 2014. CIL stock lost 1.77 per cent to close at Rs 373.60 on the Bombay Stock Exchange on Thursday.