News

Published: May 8, 2023
Updated: May 8, 2023

Coal India Ltd reports significant growth in FY'23 despite challenges

Coal India Ltd (CIL) has reported a significant increase in its net sales and profit after tax (PAT) for the fiscal year 2022-23. The company's net sales grew by 27%, from Rs. 1,00,563 Crores in FY'22 to Rs. 1,27,627 Crores in FY'23. The PAT for the year also rose by an impressive 62%, from Rs. 17,378 Crores in FY '22 to Rs. 28,125 Crores in FY'23.

Q4FY23 results show a decline in net profit

However, the Q4FY23 results show a decline in net profit, which dropped by 18% YoY, from Rs. 6,715.00 Cr in Q4FY22 to Rs. 5,527.62 Cr in Q4FY23. The decrease is attributed to increased provision towards wages in NCWA-XI. Coal India reports that PAT would have been the highest ever in any quarter had the provision not been made.

Increase in sales and premiums bolstered profitability

Coal India attributes its increased profitability to higher volume sales and increased premiums in e-auction sales. Despite capping coal prices for the past five years amidst rising input costs, the company managed to lift its profit into a higher orbit.

Significant growth in e-auction sales

Although the number of e-auction sales dropped by 41% in Q4FY23, higher premiums triggered e-auction sales to reach Rs. 690 Cr. The coal auction segment's realisation per tonne increased by 86% YoY in Q4, from Rs. 2,092 to Rs. 4,526. Over the full fiscal year, the realisation per tonne of coal sold through a digital auction increased by 157.6% to Rs. 4,841 from Rs. 1,879 in FY'22.

Flat growth in FSA sales

FSA sales were flat at Rs. 1,475 compared to Rs. 1,406 in FY'22. However, an increase in the average realising under FSA, along with an increase in volume sold, led to a net result of about Rs. 3,879 Crores in the fourth quarter.

Recommendation of a final dividend

The company's board of directors recommended a final dividend of ₹4 per share for FY23.

Shines amidst challenges

Despite challenges faced in the industry, Coal India Ltd has managed to report impressive growth in FY'23. Higher sales and premiums in e-auction sales have bolstered profitability, and an increase in realisation under FSA has contributed to the company's overall success.