Coal India today declared a consolidated 13 per cent increase in net profit during 2010-11 to Rs 10,867 crore. This is against an identical growth rate in revenue to Rs 50,233 crore.
Dividend for the year stands at Rs 3.90 per share of the face value of Rs 10.
Nearly 56 per cent of the profit was contributed by sales through e-auction and MoUs (bilateral contracts for supplying in excess of agreed quantities at higher than notified price), accounting for merely 12 per cent of its annual production of 431 million tonnes of coal.
Of the total the 45 million tonnes of coal sold through e-auction the contribution was a little less than 40 per cent of the net profit.
According to the company Chairman, Mr N.C. Jha, overall 30 per cent of the total sales turnover was generated through sales at market price. Apart from e-auction and MoU, CIL sells washed coal and hard coke at market price.
Though CIL did not release the results of the January-March 2011 quarter, a back-of-the-envelope calculation suggests that the company posted Rs 4,221 crore of net profit during the last quarter.
CIL reported a total profit of Rs 6,646 crore during the first nine months of the last fiscal. In other words nearly 39 per cent of the annual profit was accrued in the fourth quarter arguably due to escalation in prices in February 2011.
According to Mr Jha, CIL lost 16 million tonne of production during the last fiscal due to the embargo imposed by the Union Ministry of Environment and Forests on account of comprehensive environment pollution index (CEPI) scheme.