CIL’s PAT drops 18% on wage bill in Q4, but net profit in FY23 touches record high

New Delhi: Sustaining strong financial fundamentals, Coal India Ltd’s (CIL) profit after tax (PAT) for FY 2022-23 posted a massive 62 percent growth at Rs 28,125 crore compared to Rs 17,378 crore of FY 2021-2022. “This was despite provisioning Rs 8,153 crore in the accounts in 2022-23 towards wage revision of CIL’s non-executive manpower,” said Coal India. However, the impact of this provisioning was visible in the financial results for the fourth quarter of the last fiscal as both PAT and profit before tax (PBT) shrunk by 18 percent.

Climbing to an all-time high, the annual PAT bested the previous high of Rs 17,464 crore recorded in 2018-19 by 61 percent. “Higher volume sales and increased premiums in e-auction bolstered the company’s profitability,” said CIL. For Q4 of FY 2022-23, CIL recorded PBT of Rs 7,642 crore and PAT of Rs 5,528 crore. “Both PBT and PAT have shrunk by 18 percent, compared to the same quarter of FY22 primarily due to increased provision towards the wages in NCWA-XI. PAT would have been the highest-ever profit in any quarter had the provision not been made,” said Coal India.

Coal India registers best-ever net profit despite capping coal prices

CIL lifted its profit into higher orbit despite the company capping its coal prices for over the past five years amidst rising input costs, especially diesel and explosives, and increased wage costs due to provisioning in the accounts.

CIL board recommends dividend of Rs 4 per share

The company’s board that met on May 7 recommended the payment of a final dividend of Rs 4 per share. Earlier, in two tranches, a total dividend of Rs 20.25 per share was already paid out.

Though e-auction sales at 16.40 MT were lower by 41 percent in volume terms in Q4 compared to 27.65 MT of the corresponding quarter of FY22, higher premiums under the e-window helped CIL in cranking up e-auction sales by Rs 690 crore. The realisation per tonne of coal of was Rs 4,526 under the auction segment in Q4 against Rs 2,434 in the corresponding quarter of FY22. The jump was Rs 2,092 per tonne or 86 percent.

Higher volume sale by 17.34 MT and better average realisation under FSA resulted in a net impact of around Rs 3,879 crore in Q4. The FSA sale increased to 167.45 MT in Q4 FY23 compared to 150.11 MT of the preceding fiscal’s Q4. Realisation per tonne of coal under FSA category was Rs 1,550/tonne, an increase of five percent, compared to Rs 1,470 per tonne of Q4 FY22.

Whereas, for the entire 2022-23, realisation per tonne of coal under e-auction was Rs 4,841 against Rs 1,879 per tonne in FY22, up 157.6 percent. The same in the case of FSA sales was Rs 1,475 as compared to Rs 1,406 of FY22.

The company’s net sales were the highest-ever for Q4 as well as for the entire FY23. Net sales at Rs 35,161 crore in Q4 of FY23 were up by 17 percent compared to Rs 29,985 crore in the fourth quarter of FY22. For the full year of 2022-23, CIL’s net sales were Rs 1,27,627 crore. This is a jump of 27 percent compared to Rs 1,00,563 crore of the preceding fiscal.

Earnings before interest, tax, depreciation, amortization, impairment (EBITDA) - the measure of a company’s financial performance – has risen by 49 percent during FY23 to Rs 40,291 crore from Rs 26,974 crore in FY22.

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