- Coal India’s Q1 net profit remained flat as expenses surged 27% to ₹9,260 crore amid the impact from West Asia.
- The company declared an interim dividend of ₹5.5 per share.
- Coal offtake rose to 197.86 MT from 190.96 MT a year earlier.
- The company produced 169.63 million tonnes (MT) of coal during the quarter against 183.32 MT in the year-ago period.
- Incremental costs included ₹244 crore in explosives, ₹435 crore in oil and lubricant expenses, and ₹19 crore in machinery and timber expenses.
Coal India reported an 8% revenue increase to ₹46,255 crore for the first quarter, while expenses surged 27% to ₹9,260 crore, leading to a flat net profit of ₹8,850 crore, which is only a 0.7% increase year-over-year.1
The company’s expenses were driven by significant increases in various operational costs, including ₹244 crore in explosives, ₹435 crore in oil and lubricants, and ₹19 crore in machinery and timber expenses.5
Despite the revenue growth, Coal India faced challenges in production, with coal output declining to 169.63 million tonnes (MT) from 183.32 MT in the same quarter last year. However, coal offtake improved, rising to 197.86 MT from 190.96 MT a year earlier.34
The company also declared an interim dividend of ₹5.50 per equity share, reflecting its commitment to returning value to shareholders amidst fluctuating production levels.2
Overall, while Coal India’s revenue growth is a positive sign, the sharp rise in expenses and production decline raises concerns about its operational efficiency moving forward.
“Coal India produced 169.63 million tonnes of coal in the quarter, down from 183.32 million tonnes a year earlier. Additionally, coal offtake increased to 197.86 million tonnes from 190.96 million tonnes, reflecting a positive demand trend despite rising costs.”
