Coal India March quarter profit falls 18% on lower sales
Coal India, the world's top coal miner by output, said on Thursday its March-quarter net profit fell 18%, a fourth straight decline in quarterly profit, due to sluggish sales volumes during the period.business Updated: May 29, 2014 20:00 IST
Coal India, the world's top coal miner by output, said on Thursday its March-quarter net profit fell 18%, a fourth straight decline in quarterly profit, due to sluggish sales volumes during the period.
India is the world's third-largest coal importer even though it sits on the fifth-largest reserves. Coal India produces more than 80% of India's total, but often fails to meet output targets.
Reuters reported exclusively last week Prime Minister Narendra Modi was considering restructuring Coal India, the state-controlled mining behemoth, in a bid to halt a decline in output.
Coal India said its net profit for the fiscal fourth quarter ended March fell to 44.34 billion rupees ($753 million) from 54.14 billion rupees a year earlier. Net sales were nearly flat at 199.98 billion rupees.
Analysts had forecast a net profit of 48.74 billion rupees, according to Thomson Reuters data.
Coal India said it produced 143.22 million tonnes of coal in the March quarter, compared with 143.30 million tonnes a year ago. Shipment was almost flat at 129.94 million tonnes during the quarter.
Shares in Coal India, the country's fifth most valuable company, ended 1.8% lower on Thursday, having fallen 2.5% earlier, while the Sensex ended 1.3% lower.