Coal India, the world's largest coal miner, witnessed 74% rise in Q2 net profit on a year-on year basis, given the rise in coal prices. Its net profit for Q2 stood at Rs 2,593 crore.
The total sales realisation for first-half of the current fiscal came at Rs 27,647 crore. Although increase in the quantity of e-auctions helped Coal India to boost realisations a bit but not much change in seen in sales realisation per tonne, NC Jha, chairman and managing director of Coal India said in an interview to CNBC-TV18. Production during the first-half of the current fiscal was 176.62 million tonne against 185.67 tonne in the same period in 2010-11. Coal India received government approval for acquiring unlisted coal assets overseas. It has been on the lookout for coal mines abroad, it will utilise its reserves to buy stake in overseas mining companies. It is negotiating wage increases with its five recognised unions, and is expected to effect the next round of price increases once these are finalised. It has made provision of Rs 7,000/ month per employee for wage hikes in Q2. The company expects to get clarity on issue of wage hikes and price hikes by December end. Below is the edited transcript of Jha's interview wwith CNBC-TV18. Also watch the accompanying video. Q: Could you take us through what the performance has been on a year on year basis? How does the margin picture look like? A: In the first half of this year we have made profit after tax of Rs 6,737 crore against Rs 4,020 crore the same period last year. We are seeing an overall growth of about 68%. On a quarter-to-quarter basis, this quarter we have made a profit of Rs 2,593 crore against Rs 1,494 crore last year same period and that gives an increase of about 74%. So, during the quarter we have made a growth of 74% in profit after tax but for the whole first half it is about 68%. We have made about 64% growths in the first quarter three months ago and in this quarter we have grown 74% that averages to 68%. Q: There was a price hike that Coal India had undertaken earlier in the year. What kind of realisations per tonne have you manage to do this quarter and also on year on year comparison? A: The total production that we made was about 176 million tonne during the first half. The total sales realisation has been Rs 27,647 crore. So there has not been much change in the sales realisation per tonne except that the quantity of e-auction has increased by about 2.5 million tonne in the current year first half. That has made realisation little more than previous year. There has been increase in the volume of total variants because of prices by 5,100 crore but there has not been much increase in the volume growth. So, we got only a margin of about Rs 4,500 crore due to volume growth. Largely, growth has come about due to the price variations and rise in coal prices. We raised the price of coal in February this year and that was in the previous fiscal so, that impact has taken place in the current first half. Q: The production figure you have given is 176 mt, could you tell us how much of the inventory has been dispatched? A: About 23.6 million tonne. Q: We were looking forward to a rate hike in coal prices towards the end of this year perhaps the beginning of next year. When do you see this coming about? A: This hike would be needed if at all that would be for neutralising the increase in wages that would be taking place. Unless we come to some ideas as to how much would be the increase in wages I am not in a position to tell you when we will revise the price. But by the end of December we will have some idea and then maybe we will look forward. Q: So you wonDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
