Coal India Q4 net profit jumps 46% as prices climb

State-run Coal India, the largest coal producer in the world, came up with strong numbers for the fourth quarter ended March 31, 2022 with profits beating most analysts’ estimates and coming at the top end of the projections.

Coal India’s net profit for the quarter was boosted by rising price of coal due to a global spike in commodity prices because of the war in Europe.

The company’s net profit rose 46% to Rs 6,693 crore for the three months ended March 31, 2022, compared with Rs 4,587 crore in the year-ago period.

Coal India has seen a major surge in average realisation for e-auctions and washed coking coal, which has boosted its bottom-line compared with the previous year.

Total operating revenue rose 22.5% to Rs 32,707 crore from Rs 26,700 crore in the three months ended March 31, 2021. Net sales for the quarter also grew by the same percentage and came at Rs 30,046 crore.

Coal India board has recommended a final dividend of Rs 3 per share for the year ended March 31, 2022.

The company’s share price declined 1% to close at Rs 180.6 apiece in a weak Mumbai market on Wednesday. The company declared its financials after trading stopped for the day.

Other Highlights

1) Total volume by fuel supply agreements (FSA) has risen 13% to 150 million tonnes in the quarter from 132.87 million tonnes a year ago.

2) Average realisation under FSA has increased 6% year-on-year to Rs 1,474.37 a tonne.

3) Total volumes under e-auction slid during the quarter from Q4 FY21 to 27.65 million tonnes from 28.92 million tonnes.

4) Average realisation under e-auctions shot up to Rs 2,344.15 a tonne from Rs 1,752.03 a tonne a year ago.

5) Raw coal business grew 10% both in terms of volume and average realisation.

6) Total washed coal volume declined from 2.68 million tonnes to 2.21 million tonnes in Q4.

7) Average realisation for washed coal has risen from Rs 2,760.63 a tonne to Rs 3,594.83 a tonne in the same period.