Coal India Q1 FY25 net profit growth

Coal India Shines with 4% Growth in Q1FY25 Net Profit – What’s Fueling Their Success?

Coal India has announced a robust 4% growth in consolidated net profit for the first quarter ended June 30, 2024 (Q1FY25). This positive performance is underpinned by notable increases in production and offtake, demonstrating the company’s strong operational capabilities and strategic initiatives. Let’s delve into the detailed financial results and key highlights of Coal India’s Q1FY25 performance.

Financial Performance Overview

Consolidated Net Profit

Coal India’s consolidated net profit for Q1FY25 rose to ₹10,943.55 crore, marking a 4% increase from ₹10,498.39 crore in the same period last year. The previous year’s profit was restated to account for adjustments related to impairment expenses, overburden removal (stripping activity costs), and taxes.

Total Income and Expenditure

• Total Income: ₹38,349.21 crore, a 2% increase from ₹37,521.03 crore in Q1FY24.
• Total Expenditure: ₹24,287.40 crore, up 1% from ₹24,112.82 crore in the corresponding quarter of the previous year.

  

Subsidiary Performance

Four out of Coal India’s eight subsidiaries reported an improvement in profit after tax during the quarter, contributing significantly to the consolidated net profit growth.

Production and Offtake

Coal India achieved remarkable growth in both production and offtake during Q1FY25:

• Coal Production: 189.29 million tonnes (MT), an 8% increase from 175.48 MT in the year-ago period.
• Coal Offtake: 198.50 MT, a 6% rise compared to 186.93 MT in Q1FY24.

Capital Expenditure and Operational Highlights

Capex Spend

Coal India’s capital expenditure for the quarter stood at ₹3,331.44 crore, up 3% from ₹3,244.70 crore in Q1FY24. This investment underscores the company’s commitment to enhancing its production capabilities and operational efficiency.

New Initiatives

• Non-Coking Coal Washery: Commenced operations of a new washery with a capacity of 10 million tonnes per annum (MTPA) at a total cost of ₹398 crore.
• Bharat Coal Gasification & Chemicals Limited (BCGCL): Incorporated on May 21, 2024, as a new subsidiary focused on the coal gasification business.
• Preferred Bidder for Graphite Block: Coal India emerged as the preferred bidder for Madhya Pradesh’s Khattali Chotti graphite block.

Market Capitalisation and Stock Performance

Coal India’s market capitalisation grew by 9% to ₹29,1589 crore during Q1FY25 from ₹26,7524 crore in FY24. On Wednesday, Coal India’s stock closed at ₹522.15 on the BSE, up 0.62% from the previous close.

Conclusion

Coal India’s Q1FY25 results highlight a solid performance driven by strategic investments, efficient operations, and new business initiatives. The company’s ability to grow both its production and offtake while maintaining a steady increase in net profit showcases its resilience and adaptability in a competitive market. Investors and stakeholders can look forward to continued growth and value creation from Coal India in the coming quarters.

FAQs:

1.What was Coal India’s net profit for Q1FY25?

A. Coal India’s consolidated net profit for Q1FY25 was ₹10,943.55 crore, a 4% increase from the previous year.

2.How much did Coal India’s total income grow in Q1FY25?

A. The total income grew by 2%, reaching ₹38,349.21 crore compared to ₹37,521.03 crore in Q1FY24.

3.What were the key drivers of profit growth in Q1FY25?

The growth was driven by an 8% increase in production and a 6% increase in offtake.

4.Which new subsidiary did Coal India incorporate in Q1FY25?

A. Coal India incorporated Bharat Coal Gasification & Chemicals Limited (BCGCL) for the coal gasification business.

5.What was Coal India’s capital expenditure in Q1FY25?

A. The capex spend was ₹3,331.44 crore, up 3% from ₹3,244.70 crore in Q1FY24.

6.How did Coal India’s market capitalisation change in Q1FY25?

A. It grew by 9%, reaching ₹29,1589 crore from ₹26,7524 crore in FY24.

7.What is the capacity of the new non-coking coal washery?

A. The new washery has a capacity of 10 million tonnes per annum (MTPA).

8.What is the status of Coal India’s stock performance?

A. On Wednesday, Coal India’s stock closed at ₹522.15 on the BSE, up 0.62% from the previous close.

9.Which graphite block did Coal India become the preferred bidder for?

A. Coal India became the preferred bidder for the Khattali Chotti graphite block in Madhya Pradesh.

10.How many subsidiaries of Coal India reported improved profit after tax?

A. Four out of eight subsidiaries reported an improvement in profit after tax during the quarter.

Coal India Q1 FY25 net profit growth

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