Kolkata:State-owned miner Coal India Ltd (CIL) on Tuesday said its net profit for the March quarter had slipped 52% to Rs1,295.34 crore from Rs2,718.80 crore a year ago on the back of a sharp rise in employee benefit costs.
CIL’s revenue for the quarter rose 8.5% year-on-year to Rs28,909.32 crore, but overall expenses went up by 24%. Expenses on employee benefits alone jumped 80.2% to Rs16,653.86 crore from Rs9,240.67 crore during the period under consideration.
At the end of the day’s trade, Tuesday, CIL’s shares fell 0.98% to Rs282.15 apiece on the BSE in a weak market.
For the full year, the company’s consolidated net profit fell 24.3%. The miner earned Rs7,020.22 crore in net profit compared with Rs9,279.77 crore in the previous fiscal year. While its total revenue during the fiscal year rose 2.9% to Rs91,926.89 crore, total expenses shot up by 8.4%.
Expenses on employee benefits for 2017-18 was at Rs42,633.60 crore, an increase of 27% over the previous fiscal year. In a regulatory filing, CIL said expenses on employee benefits for the March quarter and the full year included a provision of Rs646.87 crore and Rs899.14 crore, respectively, towards pay revision of executives.
Executive pay revision comes into force with retrospective effect from 1 January 2017. CIL said that expenses on employee benefits also include a provision of Rs7,384.37 crore towards an increase in gratuity ceiling from Rs10 lakh to Rs20 lakh from March this year.
During 2017-18, the company witnessed production growth of 2.4% to 567.37 million tonnes, while sales grew 6.8% to 580.29 million tonnes.