Coal India Ltd. (CIL) reported a 38% drop in fourth-quarter consolidated profit to ₹2,716.1 crore, from ₹4,398.4 crore a year earlier, despite a ₹1,891 crore increase in sales to ₹24,032.5 crore.
Total expenses in the quarter ended March rose 23% to ₹22,357.5 crore mainly due to ad hoc provision for salaries and wages of non-executives and executives, rise in provisions for gratuity and superannuation liabilities and also due to provision for grade ‘readjustments’.
Full-year profit was ₹9,266 crore, 35% lower than the ₹14,266.8 crore in 2015-16. Net sales (including excise duty) for 2016-17 was flat at ₹81,054.1 crore, versus ₹81,071.7 crore.
CIL said it made a ₹2,101.4 crore provision on account of salary and wages of non-executive employees (pay revision due from July ’16) and ₹95.1 crore for executives (pay revision due from January ’17). Provision for grade slippage and adjustments was ₹2,043.6 crore, against ₹577.4 crore.
The state-run miner, which has nine subsidiaries and four joint ventures, has about three lakh non-executives and about 18,000 executives on its rolls.
The production target for CIL for FY18 is set at 600 million tonnes.
