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Coal India Limited (CIL), the world's largest coal mining company, has announced a positive start to the financial year 2024, reporting a 4.2% year-on-year increase in its consolidated net profit for the first quarter. The company's net profit surged to Rs 10,943.5 crore in Q1 FY24, compared to Rs 10,498.4 crore in the same period last fiscal. This growth is attributed to a combination of factors, including increased coal production and offtake, despite rising operational expenses.
CIL's revenue from operations also experienced a marginal increase of 1.3% year-on-year, reaching Rs 36,464.6 crore in Q1 FY24. This growth in revenue was driven by a robust demand for coal, particularly from the power sector. However, the company's total expenses also saw a significant rise, reaching Rs 24,287.4 crore for the period under review, compared to Rs 24,112.8 crore in the year-ago period. This rise in expenses is primarily attributed to higher input costs, including fuel and transportation.
Despite the rise in expenses, CIL's performance in Q1 FY24 showcases the company's resilience and ability to navigate challenging market conditions. The company's capital expenditure for the quarter grew by 3% year-on-year, reaching Rs 3331.4 crore. This investment is crucial for sustaining future growth and ensuring a steady supply of coal to meet the country's energy demands. Notably, CIL's coal production for the first quarter of the financial year witnessed a significant increase of 8% year-on-year, reaching 189.3 million tonnes. This production surge highlights the company's commitment to boosting domestic coal production and meeting the growing energy requirements of the nation. Furthermore, the offtake of coal during the quarter also rose by 6% year-on-year, reaching 198.5 million tonnes, indicating a strong demand for the company's products.
Source: Coal India: Coal India reports 4.2% increase in net profit