Coal India (COALINDIA) Q4 81/82 earnings summary

Executive summary

• Raw coal output reached a record 109.61 Mt in FY81/82, up 8.7% YoY and above the original and revised targets.

• Aggregate results across the parent and subsidiaries were a profit of Rs 34.20 crore versus a budgeted Rs 40.64 crore; the parent’s audited standalone accounts recorded a net loss of Rs 49.22 lakh.

• Five wholly owned subsidiaries operated alongside directly managed mines in Assam and neighbouring areas.

Financial highlights

• Aggregate profit of Rs 34.20 crore excluded prior-period adjustments and development rebate reserve and investment allowance charges or write-backs; budgeted profit was Rs 40.64 crore.

• CCL, WCL and CMPDIL reported FY81/82 profits of Rs 121.48 crore, Rs 41.28 crore and Rs 0.86 crore; ECL and BCCL reported losses of Rs 87.85 crore and Rs 40.10 crore.

• Standalone audited accounts showed a net loss of Rs 49.22 lakh and cumulative losses of Rs 11,540.96 lakh at 31 March 1982.

• Capital expenditure rose to Rs 580.92 crore from Rs 349.55 crore in FY80/81.

Outlook and guidance

• The 1980-81 to 1984-85 corporate plan covered production, marketing, exploration, technology, R&D, safety, finance and welfare; a ten-year perspective plan was expected to be finalised in FY82/83.

• CMPDIL prepared 22 mine project and feasibility reports for 29.07 Mtpa capacity, with estimated investment of Rs 924.90 crore.

• Wage revision discussions began ahead of the National Coal Wage Agreement-II expiry on 31 December 1982.

• The Government revised average ROM coal prices effective 27 May 1982; further revisions were to follow a Bureau of Industrial Costs and Prices review.