Riding on the back of higher value sales, particularly from e-auction route, Coal India Ltd registered nearly 178 per cent rise in consolidated net profit to ₹8,834 crore for the quarter ended June 30, as compared with ₹3,174 crore same period last year. This is far higher than street expectations, which anticipated 35-40 per cent jump in profit.

Net sales on a consolidated basis grew nearly 40 per cent to ₹32,498 crore (₹23,294 crore). The state-owned miner witnessed a 29 per cent rise in production at 159.75 million tonne (mt) (123.98 mt). Coal offtake was up around 11 per cent at 177.49 mt (160.44 mt).

Volumes sold

CIL sold close to 153.80 mt of coal through FSA (fuel supply agreement) route in Q1 this year (128 mt), clocking net sales of around ₹22,188 crore. The average realisation per tonne was ₹1442.67.

While the volume of coal sold through e-auction route was lower at close to 20.91 mt this year (30 mt), the average realisation was more than double at ₹4,339.97 a tonne (₹1,569 a tonne). CIL clocked net sales of around ₹9,074.65 crore through e-auction route (₹4,736 crore).

Moderation in prices

According to Rupesh Sankhe, analyst at Elara Capital India, the jump in profit came primarily on the back of the strong prices in e-auction platform. “Though the volume sale on e-auction was lower, the average realisation was much higher this year. We expect e-auction prices to moderate in the next two-to-three quarters as players are getting Russian coal at much cheaper rates,” Sankhe told BusinessLine.

Other income increased nearly 46 per cent at ₹995 crore (₹681 crore). Total income increased 39 per cent at ₹36,081 crore (₹25,963 crore).

Total expenses went up nearly 11 per cent at ₹23,985 crore. Employee benefit expenses, however, came down nearly 3 per cent at ₹10,073 crore (₹10,394 crore).

The company’s scrip closed at ₹219.85, up 2.02 per cent on the BSE on Wednesday.

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