Coal India’s Q1 net profit stays flat as costs rise 27% amid West Asia impact; declares ₹5.5 interim dividend
Coal India reported flat net profit for the first quarter as rising operational costs, driven by the West Asia conflict, offset revenue growth. The company declared an interim dividend of ₹5.50 per share.
Why it matters
As a primary fuel supplier for India's power sector, Coal India's financial health is a key indicator of the nation's energy security and industrial costs.
State-owned miner Coal India’s net profit in the June-end quarter stayed nearly flat year-on-year (YoY) as cost of explosives and industrial diesel, among other essentials required for mining, cumulatively rose double-digit amid the West Asia conflict, even as it sought to absorb the impact of the elevated pricing.
Kolkata-headquartered Coal India’s net profit stood at ₹8,850 crore at the end of June quarter, which increased by a marginal 0.7% on a yearly basis. The miner declared an interim dividend of ₹5.50 per equity share.
The mining behemoth’s expenses during the quarter rose 27% YoY to ₹3,260 crore. It showed an incremental cost of ₹244 crore in explosives during the review quarter, ₹435 crore in oil and lubricant expenses, and ₹19 crore in machinery and timber expenses.
The miner’s revenue increased 8% YoY to ₹46,255 crore.
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