Coal India (COALINDIA) Q4 75/76 earnings summary

Executive summary

• Coal output reached 88.98 million tonnes in FY1975-76, up 12.7% YoY; dispatches rose 7.85% despite weak demand and high market stocks.

• Reorganization effective 1 November 1975 converted the former divisional structure into a holding company with wholly owned subsidiaries; the reporting period and prior-year figures are not fully comparable.

Financial highlights

• Sales of coal, coke, other minerals and bricks totaled Rs 143.45 crore; the reported net loss was Rs 37.36 crore, with prior-year accumulated losses of Rs 65.98 crore.

• Combined results listed losses of Rs 55.19 crore across the holding entity and subsidiaries, including a Rs 6.89 crore profit at Central Coalfields Limited.

• Higher wages and input costs outpaced coal price revisions; a Rs 59.98 crore non-plan government loan supported cash requirements.

Outlook and guidance

• Weak demand led to a 1976-77 production plan at the 1975-76 level; the report expected the July 1979 price increase of Rs 36 per tonne to help avoid cash losses, but not deliver profits.

• Development approvals accelerated in 1978-79 to 23 projects with 35.90 million tonnes of capacity, following reduced project activity during the demand slowdown.