Kolkata: Coal IndiaNSE 2.28 % is incurring daily net cash losses of ₹190-200 crore as sales are down and customers are delaying payment. Before the lockdown, it managed daily cash profits of ₹50-60 crore. Executives said the company will struggle to pay for regular expenditure, half of which goes to pay salaries.
In April, sales and production dropped 26% and 11%, respectively, compared to April 2019. Dues from state power companies rose to a record ₹16,500 crore towards the end of April from about ₹14,000 crore at the end of March.
Before the lockdown, Coal India’s daily cash earnings hovered between ₹260 crore and ₹270 crore, including government levies like taxes, cess and royalty. It is now hovering between ₹30 crore and ₹40 crore a day.
