Coal India (COALINDIA) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 consolidated results rebounded to pre-tax profit of ₹1,754.56 crore from a ₹1,414.47 crore loss; coal output and dispatch both reached record levels.

• Production, productivity and dispatch improved, but weak liquidity, large receivables and losses at three subsidiaries remained significant constraints.

Financial highlights

• Consolidated gross sales were ₹22,745.75 crore and net sales ₹19,240.10 crore, versus ₹20,811.00 crore and ₹17,490.69 crore in FY 2000-01.

• Consolidated gross profit was ₹2,343.33 crore versus a ₹732.70 crore loss; pre-tax profit was ₹1,754.56 crore versus a ₹1,414.47 crore loss.

• Consolidated net income after tax was ₹519.02 crore, versus a ₹2,074.76 crore loss in FY 2000-01.

• Consolidated coal production rose to 279.65 Mt from 268.14 Mt; dispatch reached 282.43 Mt from 273.81 Mt.

Outlook and guidance

• Tenth Plan demand was projected at 460.50 Mt by 2006-07; production target for the coal operations was 350 Mt, up from 279.65 Mt in FY 2001-02.

• Tenth Plan capital needs were estimated at ₹14,310 crore; planned response included strict cost controls, higher equipment use and market borrowing, supplier credit and lead financing.

• A voluntary retirement scheme was intended to reduce workforce by more than 22,000, alongside turnaround plans for loss-making subsidiaries.