Coal India Q2 Results: Coal India’s profit fell 22% in the second quarter, did the income also fall?

State-owned Coal India Ltd (CIL) reported a 22 percent decline in consolidated profit to Rs 6,274.80 crore in the quarter that ended September 30, 2024, due to lower sales. The company on Friday reported that it had posted a consolidated net profit of Rs 8,048.64 crore in the same quarter a year ago, Coal India Ltd (CIL) said in a regulatory filing. The PSU’s consolidated income declined to Rs 32,177.92 crore in the July-September period from Rs 34,760.30 crore in the second quarter of the previous fiscal, PTI reported.

Integrated sales declined to ₹27,271.30 crore.

According to the news, the company’s integrated sales during the second quarter declined to Rs 27,271.30 crore, from Rs 29,978.01 crore in the same quarter last year. The board has declared the first interim dividend of Rs 15.75 per share for 2024-25. Coal India said that its board has approved the closure of CIL Solar PV Limited (CSPL), a wholly-owned subsidiary of the company. The closure of CSPL is expected to be completed in 8-10 months.

Restrictions on purchasing cheap substitutes

CIL Solar PV Limited said it has not undertaken any commercial activity since its inception. Central public sector enterprises are prohibited from procuring cheaper alternatives of solar PV manufacturing technologies from countries sharing land borders with India, including China, resulting in an uneven playing field impacting the viability of the project. Coal India has recorded a 10 percent rise in its coal production to 773.6 million tonnes in the 2023-24 financial year.

However, the production remained short of its 780 metric tonne production target for the 2023-24 financial year. It had produced 703.2 million tonnes (MT) of coal during the previous fiscal year 2022-23. CIL has a share of over 80 percent in domestic coal production.