Coal India (COALINDIA) Q4 80/81 earnings summary

Executive summary

• Raw coal production reached a record 100.83 million tonnes in FY1980-81, exceeding the 99.00 million-tonne target and rising 10.3% YoY.

• Record output was constrained from reaching customers by rail bottlenecks; pit-head stocks rose to 17.48 million tonnes at 31 March 1981.

• Government-approved coal and coke price increases from 14 February 1981 reduced the reported combined net loss to Rs 33.3413 crore, versus a revised estimated loss of Rs 165.65 crore.

Financial highlights

• The reported combined result was a net loss of Rs 33.3413 crore; CCL, WCL and CMPDIL were profitable, while ECL, BCCL and NEC reported losses.

• Separately, the audited Coal India account recorded a net loss of Rs 1.7452 crore for FY1980-81, with accumulated losses of Rs 114.9174 crore at year-end.

• The holding-company account’s sales were Rs 774.66 lakh, up from Rs 603.00 lakh in FY1979-80; cost of sales was 122.53% of sales, down from 133.99%.

• Capital expenditure rose to Rs 349.55 crore from Rs 261.91 crore in FY1979-80.

Outlook and guidance

• A corporate plan covering 1980-81 to 1984-85 was prepared; work began on a 10-year perspective plan, targeted for completion by end-FY1981-82.

• Fifteen coal projects with planned capacity of 15.54 million tonnes received government sanction, involving Rs 317.69 crore; two fire-control projects were sanctioned for Rs 7.71 crore.

• A 2-million-tonne Moonidih washery was expected to be completed in FY1981-82; construction also continued at Ramgarh, Mohuda, Barora and Kedla.