Coal India Ltd final dividend to enrich govt by Rs 1,426 crore

Topics Coal India | Fuel | dividend

The government will receive Rs

1,426 crore as dividend from Coal India Limited (CIL) after the dry fuel miner on Monday announced an additional final dividend of 35 per cent or Rs 3.5 per share on equity shares of Rs 10 each, an official said.

The total dividend payout for FY'21 stood at Rs 16 per share or 160 per cent.

The government is the largest shareholder with control of 66.1 per cent in the CIL. Its shareholding in the company has reduced from 71 per cent due to continuous dilution in small tranches since March 2019.

However, the CIL's generous dividend policy and high capital expenditure led to a sharp drop in the free cash position of the worlds largest miner, the official said.

Coal India's free cash balance (cash, equivalent and bank balances) dropped to Rs 17,309 crore in FY21 from around Rs 28,000 crore in 2019-20 as its cash flow generation could not match the outflow due to lower sales trend last year owing to slowdown and Covid-19 pandemic related disruptions.

E-auction sale for the quarter was 28.92 million tonne that realized Rs 1752 per tonne against Fuel Supply Agreement (FSA) that fetched Rs 1391 a tonne. It sold total raw coal of 165 million tonne during the quarter.

The CIL on Monday reported Rs 4,588.96 crore consolidated net profit (before other comprehensive income) for the fourth quarter ended March 2021, a marginal decline over the corresponding quarter profit of FY'20 of Rs 4,625.76 crore.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel