State-run Coal India Ltd missed street estimates and fourth-quarter net profit declined primarily due to increased provisions towards wages.
Coal India posted a consolidated net profit of Rs 5,527.62 crore for the March quarter, down 17.7 percent from a year ago. Consolidated revenue for the quarter stood at Rs 35,161.44 crore, up 17.3 percent year-on-year. A Bloomberg poll estimated a net profit of Rs 7,752 crore and earnings of Rs 35,270 crore.
The company has recommended a final dividend of Rs 4 per share. A total dividend of Rs 20.25 per share has already been paid in two installments earlier.
CIL’s total expenditure in the fourth quarter increased to Rs 32,791 crore from Rs 25,140.01 crore in the same quarter of the previous fiscal.
Employee benefits expense rose 60 percent YoY to Rs 16,983 crore compared to Bloomberg estimates of Rs 12,951 crore. Contractual spending rose 24 percent to Rs 7,040 crore from a year ago, against a Bloomberg analyst estimate of Rs 5,626 crore. Finance expenses rose 61 percent YoY to Rs 195 crore vs. Bloomberg analysts’ expectations of Rs 54.96 crore.
