Coal India (COALINDIA) Q4 83/84 earnings summary

Executive summary

• Record raw coal output reached 121.41 Mt in FY1983-84, up 6.4% YoY; three subsidiaries and the North Eastern Division exceeded production targets, while two subsidiaries fell short amid power shortages and absenteeism.

• Overall working results across the parent and subsidiaries showed a loss of Rs 242.68 crore; the parent’s accounts recorded net profit of Rs 332.78 lakh before the accumulated-loss balance.

Financial highlights

• Parent-account turnover rose to Rs 7,607.12 lakh from Rs 3,223.29 lakh; net profit was Rs 332.78 lakh after a Rs 37.62 lakh prior-period credit, versus a Rs 196.40 lakh loss before tax in FY1982-83.

• Parent accumulated losses stood at Rs 11,403.08 lakh at 31 March 1984; subsidiaries’ combined results included losses of Rs 127.88 crore at ECL and Rs 191.89 crore at BCCL.

• Capital expenditure increased to Rs 838.96 crore from Rs 714.20 crore; 103 mining projects with sanctioned outlay of Rs 3,611.47 crore and capacity near 140 Mt/y were under construction or completion.

Outlook and guidance

• A Seventh Five Year Plan proposal envisaged Rs 8,292 crore of investment at FY1983-84 prices to reach 206 Mt output by 1989-90; the proposal remained under government and Planning Commission consideration.

• The revised average ROM coal price of Rs 183/t took effect 8 January 1984, Rs 37.10/t above the prior average; management planned to seek another revision because prices remained below full production cost.

• Four proposed foreign-assisted projects included UK grant funding up to £30 million and loan funding up to £65 million for Amlori, plus a $151 million World Bank loan for Dudhichua.