Coal India: Q4FY13 Net Up By 90%, Total Income Rises 63%

The world’s largest coal producer, Coal India (CIL), posted whopping numbers for the fourth quarter of FY13, with its net profits going up by almost 90% from that in the corresponding period of FY12. These numbers are also crucial in the sense that the PSU juggernaut climbed this Everest of PAT on the heels of dividend income from its subsidiaries, mainly coal mining companies.

In the quarter ending March 2013 CIL earned a net profit of Rs 2320.6 crore, up from that of Rs 1223.520 crore in the year ago period. Its total income also climbed to Rs 2801.58 crore from Rs 1720.20 crore during FY12, a gain of around 63%. This spurt in its total income mainly came from an increase in the Other Income, i.e. dividends from its subsidiaries, which went up by 71.2% from Rs 1565.58 crore in FY12 to Rs 2679.65 crore in the March 2013 quarter.

In whole year terms too, the company’s PAT has increased from Rs 8065.10 crore in FY12 to Rs 9794.32 crore during FY13, which marks an increase of 21.44%. During this period, the total income also increased by 20% to reach Rs.11440.26 crore from Rs 9530.58 crore during FY12. Of this total income, the dividend income from its subsidiaries stood at Rs 9038.08 crore during the year, while this stood at Rs 7307.20 crore during FY12. Another significant chunk of the Other Income came in as interest on cash deposits.

In its board meeting, CIL has recommended a final dividend of Rs 4.30 per share. During the previous year too, it had paid an interim dividend of Rs 9.70 per share.

Though the Other Income has allowed the company to post fabulous numbers, its own performance has taken a beating. The standalone net sales have declined from Rs 154.62 crore during the quarter ending March 2012 to Rs 121.93 crore during March 2013. The net sales for FY13 also declined to Rs 352.25 crore versus Rs 415.86 crore in FY12, a drop of 15%. During the fiscal, the company has posted standalone losses from operations of Rs 374.33 crore in comparison to a loss of Rs 136.35 crore during FY12.

CIL’s performance chart has thus been subdued. The bleak performance is due to the decline in production and offtake of raw coal during the quarter ending March 2013. During the last quarter, the company produced 0.22 million tonnes of coal, while its offtake was at 0.21 MT versus 0.30 MT and 0.28 MT respectively in the corresponding period in FY12. For the whole year too, production has stagnated at 0.6 MT during FY13. The company will announce its consolidated results on May 27.