InvestorQ : Can you throw some light on the Coal India numbers for the June quarter?
rhea Babu made post

Can you throw some light on the Coal India numbers for the June quarter?

Answer
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diksha shah answered.
3 weeks ago


Like most commodities, CIL also got hit by weak industrial demand in the Jun-20 quarter. In fact, Coal India reported a 55% fall in its net profits for the Jun-20 quarter at Rs.2080 crore. The only good news was that the profit was 10% better than the consensus estimates.

If you look at the top line, then Coal India’s overall sales revenues from operations was lower by 26% at Rs.18,487 crore in the Jun-20 quarter. This can be largely explained by the 21% fall in coal off-take to 120.42 million tons in the quarter.

One principal reason for the sharp fall in the profits and sales revenues of Coal India was the COVID pandemic. The demand for coal was adversely impacted by the shutdown of vast swathes of India as well as weak demand from power sector, the main user of coal.