State-owned Coal India reported 7.8 per cent rise in consolidated net profit at Rs 4,469 crore in the first quarter ended June 30, on the back of higher sales and e-auction realisation.
The world's largest coal miner had posted a net profit of Rs 4,144 crore in the year-ago period.
Net sales of the company for the April-June, 2012 quarter increased by 13.8 per cent at Rs 16,500 crore, against Rs 14,499 crore in the corresponding period last fiscal, CIL Chairman S Narsing Rao told reporters while announcing the quarterly results.
"Higher sales were on account of conversion to GCV (gross calorific value), higher offtake worth Rs 838 crore and higher realisation from e-auction prices of Rs 412 crore," Rao said.
Interest income at Rs 404 crore added to the profits during the quarter under review.
Commenting on the single-digit rate of profit growth, Rao said, "The single reason is wage agreement which had impacted by Rs 1,200 crore during the quarter. The annual impact would be close to Rs 5,000 crore".
CIL's expenses rose significantly to Rs 12,221 crore over Rs 10,113 crore in the same quarter of the previous fiscal.
The company produced 102.4 million tonnes (MT) of coal in the April-June period against 96.3 MT for the same period last financial year.
"Production had been hampered due to rains. However, we are confident of achieving the target of annual 470 million tonnes in 2012-13," Rao said. The production target for the second quarter is 113 million tonnes, he added.
When asked if the Board approves the model fuel supply agreement to be signed with power firms with the significant changes, Rao said, "Today, it is not in a sign-able form".
CIL in its last board meeting had agreed to paying penalty between 1.5 per cent and 40 per cent on failing to supply the committed quantity of the fuel to power firms.
On price-pooling, Rao said if it is implemented, all the power consumers would have to bear the impact, adding that however, it should be neutral to CIL.
CIL supplied 91.4 per cent of aggregate coal against average contract quantity of not more than 90 per cent and therefore, Rao said, adding that the coal major should not be blamed for the coal shortage in power plants during the April-June quarter.
"We have supplied aggregate coal to the power sector at 91.4 per cent and so CIL alone cannot be blamed," Rao said.
Rao said coal linkages had been done based on 85 per cent PLF, and the difference in attaining higher PLF (plant load factor) has to be borne by imports.
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