CIL’s higher capex likely to hit FY21 bottom line

Public sector miner Coal India’s bottom line for fiscal-21 may go well below its 2020 net profit at Rs 16,714 crore owing to the increased expenditure amid low revenue realisations due to the pandemic.

The rise in expenditure is mainly on the count of capex enhancement while it had to offer relaxed conditions to attract customers, which led to lower revenues. For e- auctions the company had to concentrate more on volumes than premiums, a bottom line enhancing revenue stream.