Coal India (COALINDIA) Q4 82/83 earnings summary

Executive summary

• Raw coal production reached a record 114.06 million tonnes in 1982-83, up 4.1% YoY; results after the Coal Price Regulation Account adjustment showed a loss of Rs. 5.34 crore.

• Operational performance was constrained by power shortages, labor disruptions and law-and-order incidents, while weak coke demand and rising coal stocks pressured operations and working capital.

Financial highlights

• Aggregate working results showed profit of Rs. 37.45 crore before the Coal Price Regulation Account contribution; after adjustment for Rs. 42.79 crore retained in that account, the reported overall loss was Rs. 5.34 crore.

• Capital expenditure rose to Rs. 714.20 crore in 1982-83 from Rs. 580.92 crore in 1981-82.

• Paid-up capital stood at Rs. 1,490.70 crore at 31 March 1983; Government of India loans outstanding were Rs. 1,563.63 crore.

• The parent accounts recorded a net loss of Rs. 1.98 crore for the year; cumulative losses reached Rs. 117.37 crore at 31 March 1983.

Outlook and guidance

• A Sixth Plan investment requirement of Rs. 3,747 crore was estimated for the full plan period; 84 mining projects costing Rs. 2,342.14 crore, with ultimate capacity of 113.53 million tonnes per year, were under construction or completion.

• The wage agreement signed 11 November 1983 applies for four years from 1 January 1983; its estimated annual cost impact is Rs. 200 crore, excluding routine VDA and increment increases, with ~Rs. 250 crore expected in the current year including arrears.

• A coal-price revision was under Government consideration; management expected losses in 1983-84 if prices did not rise sufficiently to cover higher input and wage costs.