Coal India Ltd.(CIL), on Friday, reported a 19 per cent increase in net profit at Rs. 3,078 crore for the second quarter ended September 30 against a net profit of Rs. 2,593.11 crore in the corresponding period of last fiscal
The company also declared a rise in its net sales by about 11 per cent to Rs. 14,572 crore.
“Higher volumes, slightly higher realisation in prices and higher receipt from interest income contributed to the higher net profit,” S Narsing Rao, Chairman, CIL, said at a press conference here. “CIL produced 89.09 million tonnes of coal in the quarter ending September 2012 as compared to 80.30 million tonnes in the same period last year, a 10.9 per cent rise of 8.79 million tonnes,” Mr. Rao said.
“For the half-year ended September 30, 2012, CIL posted a 12 per cent rise in net profit to Rs. 7,547 crore. Net sales grew by 12 per cent to Rs. 31,073 crore.
The National Coal Wage Agreement (NCWA) also had its impact on the company’s profits, according to a press release.
Mr. Rao also said the e-auction prices declined by Rs.153 a tonne during the period under review.
This was primarily because bidders opted for international coal instead of coal produced by CIL.
The new Director (Finance) A. Chatterjee agreed that the interest income would also be under pressure as rates were easing and wage pressure would continue for the next two quarters.