Coal India increases profit, hikes prices

COAL India has reported a better-than-expected 35% increase in its 2013 fiscal year fourth quarter consolidated net profit.
Coal India increases profit, hikes prices Coal India increases profit, hikes prices Coal India increases profit, hikes prices Coal India increases profit, hikes prices Coal India increases profit, hikes prices

Image courtesy of Coal India

Staff Reporter

The world’s biggest coal miner said the increase was helped by higher supplies to customers and a decline in wage costs.

Sales only rose 2.5% to 199 billion rupees ($US3.57 billion) during the quarter but employee expenses dropped 21% to 74.7 billion rupees.

In a statement on Monday, Coal India said net income soared to 54.1 billion rupees in the three months ended March 31 from 40.1 billion rupees a year earlier.

The market was expecting a net profit of 51.4 billion rupees on sales of 193.4 billion rupees, according to a poll of 18 analysts.

The state-owned miner accounts for more than 80% of Indian coal production and plans to further increase production this year to help meet local demand, expecting its output to grow 6.5% to 482 million tons in the financial year started on April 1.

The company reported a cash reserve of 622.4 billion rupees at the quarter’s close.

Shipments during the quarter rose 5.7% to 130Mt but production declined marginally to 143.3Mt from 144.6Mt a year earlier, Coal India said.

The announcement was made after trading closed on Monday.

In a separate announcement, Coal India said it would raise prices from Tuesday, adding the hikes would increase revenue by about 21.19 billion rupees for the rest of FY2014.

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