Coal In­dia profit misses es­ti­mates as glut weighs down on prices

The Pak Banker - - 6BUSINESS -

MUM­BAI: Coal In­dia Ltd., the world's big­gest pro­ducer of the fuel, missed an­a­lysts' es­ti­mates for fourthquar­ter profit as over­sup­ply of the fuel and lower in­ter­na­tional prices trimmed earn­ings.

Net in­come for the three months ended March 31 rose to 42.5 bil­lion ru­pees ($ 634 mil­lion) from 42.4 bil­lion ru­pees a year ear­lier, the state- run mo­nop­oly said in a stock ex­change fil­ing Sun­day. The profit lagged a mean es­ti­mate of 45.5 bil­lion ru­pees from 22 an­a­lysts compiled by Bloomberg. Coal de­liv­er­ies dur­ing the pe­riod rose 7.8 per­cent to 145.2 mil­lion met­ric tons. A drop in sales per ton to 1,429.5 ru­pees from 1,542 ru­pees a year ago ate into the Kolkata- based miner's earn­ings, off­set­ting growth in de­liv­er­ies. A glut caused by the com­pany's record out­put last year and a de­cline in global prices also proved a drag on profit. Sales in the three months were flat at 207.6 bil­lion ru­pees, com­pared to 207.7 bil­lion ru­pees in the pre­vi­ous year, the com­pany said.

Power pro­duc­ers, Coal In­dia's big­gest cus­tomers, are strug­gling to use all their ca­pac­ity, as cash- strapped re­gional power re­tail­ers cur­tail pur­chases. The miner, which has a tar­get to al­most dou­ble its an­nual out­put to 1 bil­lion tons in four years, is count­ing on de­mand from power util­i­ties fol­low­ing gov­ern­ment mea­sures to turn around the in­debted re­tail­ers.

The com­pany pro­duced 165.2 mil­lion tons of coal dur­ing the quar­ter, the most ever in a quar­ter. In April, how­ever, it cut out­put and de­liv­er­ies for the first time in 15 months, as in­ven­to­ries piled up. It will in­crease prices by about 6.29 per­cent from May 30, the com­pany said in a sep­a­rate state­ment.

Coal In­dia's shares rose 0.2 per­cent to 281.30 ru­pees on Fri­day in Mum­bai. The stock has de­clined 15 per­cent this year, com­pared with a 2 per­cent gain in the bench­mark S&P BSE Sen­sex.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.