Coal India Ltd.’s first-quarter profits rose beating estimates on higher operating margin and sales.
Net profit of the world’s largest miner of the fossil fuel rose 31.5% quarter-on-quarter to Rs 8,834.2 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 5,716.8-crore consensus estimate of analysts tracked by Bloomberg.
Coal India Q1 FY23 Highlights (QoQ)
Revenue from operations rose 7% to Rs 35,092.2 crore, against the estimated Rs 29,994.6 crore.
Operating profit rose 35% to Rs 12,250 crore due to lower expenses. Analysts estimated Ebitda at Rs 8,254.5 crore. The cost of materials consumed fell to Rs 3,057.3 crore from 3,330.8 crore in the previous quarter.
Margin stood at 34.9% against 27.8% in the preceding quarter.
Finance costs rose 24.26% to Rs 150.2 crore.
Other income was down 44.4% at Rs 994.5 crore.
Production of raw coal fell 23.5% sequentially to 159.8 million tonnes, while offtake fell 1.6% on quarter to 177.5 million tonnes.
The company had earlier informed exchanges that its capex jumped to Rs 3,034 crore in Q1FY23 compared with Rs 1,841 crore a year earlier. It resulted in a sizeable Rs 1,193-crore volume increase, the company said.
“The capex increase came on the back of a strong spending in acquiring land and strengthening transport infrastructure in our coalfields under first mile connectivity projects. These two vital areas helped CIL in expanding its mining operations for accelerated production and pairing it with seamless transportation of coal,” the company had said.
Shares of Coal India closed 2.02% up on Wednesday ahead of the earnings when the benchmark BSE Sensex closed almost unchanged.