Coal India Q4 Results: Reports fall in net profit by 18%

New Delhi: India's largest coal-producing company, Coal India Limited on May 07, 2023, declared its audited financial results (Standalone & Consolidated) for the 4th Quarter and Financial Year ended 31st March 2023 and declared unmodified opinion and Final Dividend for FY 2022-23. 

The company reports a fall of 18 per cent in its quarter 4 profit, as CIL made higher provisions for wage hikes. According to the company's BSE Filling, the Consolidated net profit fell to INR 55.33 billion in three months ending March 31.
 

Sustaining strong financial fundamentals, Coal India’s (CIL) profit after tax (PAT) for FY 2022-23 posted a massive 62% growth at Rs. 28,125 Crores compared to Rs. 17,378 Crores in FY’2022. This was despite provisioning Rs. 8,153 Crores in the accounts in 2022-23 towards wage revision of CIL’s non-executive manpower. Climbing to an all-time high, the annual PAT bested the previous high of Rs.17,464 Crores recorded in 2018-19 by 61%. Higher volume sales and increased premiums in e-auction bolstered the company’s profitability. 

Coal India Limited PBT and PAT for Q4 

CIL recorded a PBT of Rs. 7,642 Crores and PAT of Rs. 5,528 Crores in Q4 FY 2022-23. Both PBT and PAT have shrunk by 18%, compared to the same quarter of FY’22 primarily due to increased provision towards the wages in NCWA-XI. PAT would have been the highest-ever profit in any quarter had the provision not been made.

CIL lifted its profit into higher orbit despite the company capping its coal prices for over the past five years amidst rising input costs, especially diesel and explosives and increased wage costs due to provisioning in the accounts.

Coal India Limited Dividend for Q4 

The company’s board that met on 7th May recommended the payment of a final dividend of Rs. 4 per share. Earlier in two tranches a total dividend of Rs.20.25 per share was already paid out

Coal India Limited Net Sales for Q4 

The company’s net sales were the highest ever for Q4 as well as for the entire FY’23. Net sales at Rs. 35,161 Crores in Q4 of FY’23 were up by 17% compared to Rs. 29,985 Crores of the fourth quarter FY’22. For the full year of 2022-23, CIL’s net sales were Rs. 1,27,627 Crores. This is a jump of 27% compared to Rs. 1,00,563 Crores of the preceding fiscal.

Earnings before interest, tax, depreciation, amortization, impairment (EBITDA) - the measure of a company’s financial performance – has risen by 49% during FY’23 to Rs. 40,291 Crores from Rs.26,974 Crores in FY’22.