Coal India Q2 profit drops 22% to Rs 6,275 crore

New Delhi: State-owned Coal India Limited (CIL) on Friday reported a 22 percent drop in consolidated profit at Rs 6,274.80 crore for the quarter ended September 30, 2024 on the back of lower sales.

The company had posted consolidated net profit of Rs 8,048.64 crore in the year-ago period, CIL said in a regulatory filing.

PSU Watch is now on Whatsapp Channels. Click here to join

The consolidated income of the PSU in the July-September period dropped to Rs 32,177.92 crore, over Rs 34,760.30 crore in the second quarter of the previous fiscal.

The consolidated sales of the company during the second quarter declined to Rs 27,271.30 crore, over Rs 29,978.01 crore in the year-ago period.

The board has declared the first interim dividend of Rs 15.75 per share for 2024-25.

CIL said its board has approved the closure of CIL Solar PV Ltd (CSPL), a wholly-owned subsidiary of the company. The closure of CSPL is expected to be completed within a period of 8-10 months.

Since its inception, CSPL has not undertaken any commercial activities, it said.

Central Public Sector Enterprises "are restricted to procure cheaper alternatives of Solar PV manufacturing technologies from countries sharing land border with India, including China, which results in an uneven playing field by making impact on the feasibility of the project."

Coal India has posted a 10 percent rise in its coal output at 773.6 million tonnes in the 2023-24 fiscal year. However, the output fell short of its 780 MT production target for the 2023-24 financial year.

It had produced 703.2 million tonnes (MT) of coal during the preceding 2022-23 fiscal.

CIL accounts for over 80 percent of domestic coal output.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)