Coal India Q1 results: Net profit drops 55% to Rs 2,080 crore, beats Street estimates

Mining major Coal India on Wednesday reported a 55 per cent drop in its net profit for the quarter ended June to Rs 2,079.60 crore, but still managed to beat analysts’ estimates.

It had reported a net profit of Rs 4,629.67 crore in the year ago period. An ET Now poll had projected the net profit to come in at Rs 1,905 crore.

Its revenue from operations dropped 25.9 per cent to Rs 18,486.77 crore, from Rs 24,938.99 crore in the corresponding quarter last year.


The company said the continuing Covid-19 pandemic has impacted the business of the group adversely. For the quarter, the company’s offtake was 120.42 million tonnes against 153.49 million tonnes in the same period a year ago, due to less demand from power sector as well as closure of industries in the non-regulated sector due to Covid-19.

The company said it is, however, taking continuous measures to combat adverse impact of Covid-19 and has implemented manifold measures for ease of doing business.

It said it has considered the possible effects that may arise due to the pandemic in the preparation of the current quarter results including the recoverability of carrying amounts of financial and non-financial assets as on June 30.

“The group will continue to closely monitor any material changes arising out of future economic conditions and the resultant impact on its business,” it added.

Ahead of the announcement, Coal India shares closed 2.1 per cent higher at Rs 136.30, while the benchmark Sensex climbed 0.5 per cent to 39,086.