Coal India Q1 profit plunges 55% to Rs 2,080 cr due to lower sales

The coal output by CIL on consolidated basis during the quarter dropped to 121.04 million tonne (MT) from 136.94 MT in April-June 2019-20.

Coal India Ltd (CIL) on Wednesday posted 55 per cent decline in consolidated net profit at Rs 2,079.60 crore for the quarter ended June 30 on the back of lower sales.

However, the company had posted consolidated profit from "continuing operations" of Rs 4,629.67 crore in the year-ago period, the PSU said in a filing to BSE.

The company's sales in April-June was at Rs 17,007.10 crore as against Rs 23,223 crore in the year-ago period.

Expenses during the period under review dropped to Rs 16,470.64 crore from Rs 19,077.44 crore in the corresponding quarter of previous fiscal year.

The coal output by CIL on consolidated basis during the quarter dropped to 121.04 million tonne (MT) from 136.94 MT in April-June 2019-20.

The coal offtake by the PSU during the period fell to 120.42 MT from 153.49 MT in the corresponding quarter of the previous fiscal year.

Coal India accounts for over 80 per cent of domestic coal output.

The company is targeting one billion tonne of production by 2023-24.

CIL will pump in over Rs 1.22 lakh crore into projects related to coal evacuation, exploration and clean coal technologies by 2023-24, to achieve 1 billion tonne of fuel output target, Coal Minister Pralhad Joshi said on Tuesday.

Out of the proposed spend of over 1.22 lakh crore, CIL has planned to invest Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure and Rs 29,461 crore on project development by 2023-24, the minister had said.

He added the state-owned company will also invest Rs 32,199 on diversification and clean coal technologies, Rs 1,495 crore on social infrastructure and Rs 1,893 crore on exploration works.

The investment of Rs 1.22 lakh crore will be utilised to fund a total of 500 projects, Joshi had said.

(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.)

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