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:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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