Coal India - Q1FY14 Results First Cut - Microsec

Coal India Ltd announced its Q1FY14 results on 3rd August, 2013.

The company arrived at net sales of INR16472.42 crore, which was flat on YoY basis, but down by 17.24% on QoQ basis due to flat production and offtake on YoY basis and drastic fall in production on QoQ basis. The fall in production was due to variety of issues including heat waves in Orissa and the recent heavy flood in central India as well as issues with NTPC's couple of plants. States like Gujarat and Rajasthan decided to pick up less coal. CIL did not have adequate infrastructure to divert this coal to other parts of the country leading to at least 1 million tonnes of unsold coal. The EBITDA for the quarter was INR3957.95 crore, which was down by 17.79% and 35.32% on YoY and QoQ basis. The company posted first quarterly profit decline in five quarters and arrived at net profit of INR3741 crore, which was also down by 16.29% and 30.90% on YoY and QoQ basis. Profit fell because of less e-auction realisation by INR557 crore, substantial increase in sale of FSA coal i.e. coal to power sector, increased cost of production owing to rise in diesel prices, increase in wages of contractual labourers.

Source : Equity Bulls

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