Coal India Makes Profit of INR 37.18 Billion in Q3 FY16

In spite of troubles in inventory management due unsold ramping production, the state owned miner manages to get its profit share.

With a registered growth of about 32% in production volume against Q2 FY16, the state owned Coal India has earned a profit of INR 37.18 Billion in last quarter of 2015. It is to be noted that the company had a earned a profit of INR 32.6 Billion during same period of time last year.

The company’s profit grew by INR 4.6 Billion in a year’s time. The profit is outcome of uptick in sales as reported.  The company’s sales grew by 6.8% to INR 18.9 Billon against to INR 17.7 Billon.

A week ago it was anticipated that CIL may tune down its production as it is facing challenges to fix storage of coal stock piles produced by CIL. But with the declared profit the company has also declared that it has no plan of curbing its coal production.

Coal India’s production has increased by about 9% to 373.43 MnT in first 3 quarters of the Fiscal against 342.3 MnT of the last fiscal. According to a release by Indian Coal Ministry, earlier in the financial year annual coal demand for FY16 has grown up to 910 MnT. Centre has planned about 550 MnT of coal production from CIL and about 150 MnT from SCCL including other captive blocks.