Coal India Ltd (CIL) is confident of a 6 per cent growth in its output and revenues this fiscal, at current prices, Chairman and Managing Director S. Narsing Rao said. CIL has had two consecutive years of flat production growth.
CIL ended the fourth quarter of 2011-12 with a drop in net profit to Rs.4,013.4 crore from Rs.4,220.9 crore in the same period in 2010-11, was mainly on account of higher wage costs due to NCWA-IX (National Coal Wage Agreement), which brought a 25 per cent hike in miner's wages. Net sales were higher at Rs.19,418 crore against Rs.15,004 crore.
For the year ended March 31, 2012, output increased by 1.1 per cent to 435.8 million tonnes while offtake increased by 2 per cent. Boosted by a 24.3 per cent increase in sales, post-tax profit increased to Rs.14,788 crore from Rs.10,867 crore, a 36.1 per cent increase. Mr. Rao said current year's output target had been pegged at 464.1 million tonnes. In the first 67 days of the year, the 72 million tonne stock has been liquidated by 7.5 million tonnes.
CIL was listed in November 2010 with government divesting 10 per cent of its holding.
Asked to comment on the FSA (fuel supply agreement) issue, Mr. Rao said that 14 power producers had already signed the FSA.
As to whether imports would be necessary to meet the supply obligations, should all 49 FSAs be signed, Mr. Rao said CIL hoped to be able to meet its obligation to the extent of 65 per cent and would import the balance. An estimated 80 million tonnes of coal would be required if all the FSAs are signed this year. Total coal supplies to the power sector was 312.1 million tonnes in 2011-12.
