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Coal Minister Piyush Goyal did not have a ready remedy to investors’ concern over Coal India’s thinning profit margin.
Coal India produced a record 32 million tonnes more coal in 2014-15. But its balance-sheet was severely hit.
With an exception in the June 2014 quarter, when the Narendra Modi-led government assumed office, profits have been declining.
While the March 2015 results are yet to be declared, the cumulative profit in the first three quarters of this fiscal was down by nearly 10 per cent over the same period last year.
This was due to the government’s focus on allotting more coal to the power sector which offers a lower price for fuel compared to sectors such as ferroalloys, fertiliser etc.
Asked about the company’s shrinking margins, the Minister asked the investor fraternity to take a “long term” view on the company’s potential.
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