Coal India profit rises as output grows

NEW DELHI Tue Aug 12, 2014 7:23pm IST

A worker unloads coal from a goods train at a railway yard in the northern Indian city of Chandigarh July 8, 2014. REUTERS/Ajay Verma

A worker unloads coal from a goods train at a railway yard in the northern Indian city of Chandigarh July 8, 2014.

Credit: Reuters/Ajay Verma

Related Topics

Stocks

   

NEW DELHI (Reuters) - Coal India Ltd, the world's largest coal producer, said net profit rose eight percent in the April-June quarter from a year earlier as mine expansions helped boost output by five percent.

Though production inched up to 108.3 million tonnes, it was still below the company's target for the period.

The state behemoth has been unable to dig out coal fast enough to meet the rising needs of power plants in a country where a third of the population still goes without electricity. Imports have surged as a result.

Consolidated net profit, including results from units and shares in joint ventures, rose 8 percent to 40.33 billion rupees. Analysts had expected 39.52 billion rupees, according to Thomson Reuters data.

Net sales too increased 8 percent to 178 billion rupees in the first quarter of its fiscal year, the company said.

Coal India produces about 80 percent of the coal mined in India and feeds all but four of the 86 coal-based thermal power plants, but its inability to raise production quickly has made India the third-largest importer of the fossil fuel.

Lower-than-expected output has prompted the government to consider restructuring the company to improve its performance. Some of its mines may also be allowed to be operated by foreign firms.

Shares in the company have risen about 10 percent in line with the broader index, on hopes of reforms by the new government of Prime Minister Narendra Modi.

(Reporting by Krishna N Das; editing by David Clarke)

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage