Coal India Limited, a state-owned coal mining company, released its Q1 results, reflecting various financial metrics and performance indicators. Here's a breakdown of the key details from Coal India's Q1 report:
- Net Profit Decline: Coal India's net profit for the quarter ending June 2023 saw a 10% year-on-year decline, amounting to ₹7,941 crore. In the corresponding quarter of the previous year, the net profit was reported as ₹8,834 crore.
- Net Sales: The company's net sales experienced a marginal rise, reaching ₹33,072.6 crore during the quarter under review. This represents a slight increase from ₹32,497.9 crore reported in Q1FY23.
- Sequential Performance: Coal India's net profit showed a significant sequential increase of 43% when compared to the previous quarter (ending March 2023), where it stood at ₹5,527.6 crore.
- Analyst Expectations: Despite the decline in net profit, Coal India's net earnings for the first quarter of fiscal year 2024 exceeded analyst expectations. The company's net profit surpassed the projected value of ₹6,125 crore, based on the average of three brokerage firm projections.
- Revenue from Operations: Coal India reported revenue from operations of ₹35,943.21 crore, indicating a 2.5% year-on-year increase from ₹35,092.17 crore in the previous quarter.
- Total Income: The total income for Q1FY24 reached ₹37,521.03 crore, reflecting a 3.9% increase from ₹36,086.68 crore in the same period of the previous fiscal year.
- Expenses: Coal India's total expenses surged by 11.5% in the first quarter, amounting to ₹26,745.68 crore. In the previous year's corresponding quarter, expenses were reported at ₹23,985.31 crore. The increase in expenses was attributed to the decision to raise non-executive worker compensation.
- Coal Production and Consumption: The company reported a raw coal output of 175.476 million tons for the quarter, which marked an increase from 159.753 million tonnes in the same period of the previous year. Raw coal consumption also rose, reaching 186.950 million tons, compared to 177.490 million tons in the previous quarter.
In summary, while Coal India witnessed a decline in net profit, its performance exceeded analyst expectations. The company experienced marginal growth in net sales, revenue from operations, and total income. The increase in expenses was linked to the decision to raise compensation for non-executive workers. Despite the challenges faced by the coal industry, Coal India's production and consumption of raw coal also showed an upward trend.