Coal India net profit rises 22.28% to Rs 4,629.87 cr in June quarter

Higher despatches to the non-power sector coupled with an increase in washed coal prices helped Coal India post a 22.28 per cent rise in its net profit for the quarter ended June 30, 2019, at Rs 4,629.87 crore.

The company’s net profit during the corresponding quarter of the last fiscal year stood at Rs 3,786.44 crore. Despite flat sales volume, higher prices drove the company’s sales revenue to rise by 3.64 per cent to Rs 23,223 crore.

According to a senior Coal India executive, while sales and production volume remained flat, the company had hiked prices of washed coal in the winter of 2018 which directly led to an improvement in its margins. It was backed by increased supplies to the non-power sector where prices are higher by 20 per cent over the notified price for the power sector. “These two factors majorly contributed towards improvement in profitability”, the official said.