India’s largest coal producer Coal India Ltd on Monday reported a 5% year-on-year decline in net profit at Rs 4,013 crore in the Januray-March quarter against Rs 4,221 crore a-year ago as stagnant volumes and a spike in its wage bill affected the firm’s profitability.
Net sales, however, went up up 29% to Rs 19,419 crore, due to the higher price of the commodity. Coal India, which is also the world’s largest coal producer, had to reverse a price increase under pressure from power firms earlier this year. Its wage bill during the period went up by almost 89% to Rs 9,069 crore.
“The National Coal Wage Agreement...was finalised on January 31,2012. The impact on wage arising out of the agreement has been considered in the financial results,” it said.
During the full fiscal 2011-12, the company produced 436 million tonnes of coal against 431 mt in 2010-11, a growth of 1.1%.
It has given a guidance of 6-7% revenue growth in 2012-13 provided coal prices remain at current levels.