Coal India Net Beats Estimates With 8.1% Gain as Output ClimbsRajesh Kumar Singh
Coal India Ltd., the world’s largest producer of the fuel, reported an 8.1 percent increase in fiscal first-quarter profit after sales and production rose.
Net income advanced to 40.3 billion rupees ($658 million), or 6.39 rupees a share, in the three months ended June 30 from 37.3 billion rupees, or 5.91 rupees, a year earlier, the Kolkata-based company said today in a statement. The median estimate of 31 analysts compiled by Bloomberg had been for a profit of 39.8 billion rupees. Sales also rose 8.1 percent, to 178 billion rupees.
Coal India produced 108.3 million tons of coal during the three months, while it sold 119.6 million tons of the commodity. The output and sales, while rising from a year ago, fell short of the company’s own target for the quarter. Delays in land acquisition, slow environmental approvals and an inadequate railway network have hampered production.
Total expenses in the quarter rose to 140.4 billion rupees from 129.9 billion rupees a year earlier.
Coal India shares gained 2 percent to 364.60 rupees in Mumbai today. The stock has risen 26 percent this year, compared with the 22 percent advance in the S&P BSE Sensex Index.
The results were released after the close of trading.