BackCoal India reports record high PAT growth of 62% in FY23, Board declares ₹4 per share dividend
The profit after tax (PAT) for Coal India Ltd (CIL) for FY 2022–23 grew dramatically by 62%, from Rs. 17,378 Crores in FY22 to Rs. 28,125 Crores.
PremiumThe profit after tax (PAT) for Coal India Ltd (CIL) for FY 2022–23 grew dramatically by 62%, from Rs. 17,378 Crores in FY22 to Rs. 28,125 Crores. The yearly PAT grew by 61%, surpassing the previous record of Rs. 17,464 Crores set in 2018–19, to reach an all-time high. Higher volume sales and increased premiums in e-auction bolstered the company’s profitability, said Coal India in a statement.
During Q4FY23, the company reported a net profit of ₹5,527.62 Cr compared to ₹6,715.00 Cr during Q4FY22, reporting a drop of 18% YoY. “Both PBT and PAT have shrunk by 18%, compared to same quarter of FY’22 primarily due to increased provision towards the wages in NCWA-XI. PAT would have been the highest ever profit in any quarter had the provision not been made," said Coal India in a statement.
Coal India said it lifted its profit into higher orbit despite the company capping its coal prices for over past five years amidst rising input costs, especially diesel and explosives and increased wage cost due to provisioning in the accounts.
Net sales increased by 17% to Rs. 35,161 Crores in Q4 of FY'23 from Rs. 29,985 Crores in Q4 of FY'22. CIL's net sales were Rs. 1,27,627 Crores during the whole 2022–23 fiscal year. Compared to the Rs. 1,00,563 Crores of the previous year, this is a 27% growth. The company said its EBITDA climbed by 49% during FY'23 to Rs. 40,291 Crores from Rs. 26,974 Crores in FY'22.
Although the number of e-auction sales in Q4 dropped by 41%, from 27.65 MT in the comparable quarter of FY'22 to 16.40 MT in Q4, higher premiums triggered e-auction sales to reach Rs. 690 Cr. In comparison to the same quarter in FY22, the coal auction segment's realisation per tonne was Rs. 4,526 in Q4. The increase was Rs. 2,092, or 86%, per tonne.
However, over the full 2022–2023 year, the realisation per tonne of coal sold through a digital auction increased by 157.6% to Rs. 4,841 from Rs. 1,879 in FY’22. FSA sales were flat at Rs. 1,475 as opposed to Rs. 1,406 in FY'22.
17.34 MTs more volume sold and improved average realising under FSA led to a net result of about Rs. 3,879 Crores in the fourth quarter. FSA sales grew to 167.45 MTs in Q4 FY'23 from 150.11 MTs in the Q4 of the prior year. Realisation increased by 5% from Q4 FY'22's Rs. 1,470 per tonne of coal to Rs. 1,550 per tonne under the FSA category.
The company's board of directors, which met on May 7th, recommend a final dividend of ₹4 per share for FY23.
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