Coal India (COALINDIA) Q4 85/86 earnings summary

Executive summary

• Raw coal output reached 134.11 million tonnes, above the 133.5 million-tonne target and 130.81 million tonnes in 1984-85; coal and coke despatches rose 10.1% to 126.84 million tonnes.

• Despite higher production and despatches, consolidated loss widened to Rs. 404.18 crore from Rs. 78.03 crore, reflecting higher wages, input costs, stock provisions and coal price-cost pressure.

Financial highlights

• Consolidated net coal and coke sales, after statutory levies, were Rs. 2,662.10 crore versus Rs. 2,438.69 crore in 1984-85; total receipts were Rs. 2,848.61 crore.

• Consolidated loss was Rs. 404.18 crore versus Rs. 78.03 crore; excluding the Rs. 48.45 crore CPRA balance, adjusted 1985-86 loss was Rs. 355.73 crore.

• Operating loss before CPRA contribution increased to Rs. 355.73 crore from Rs. 78.03 crore; average coal realisation was Rs. 191.93/tonne versus the Government-fixed/intended average price of Rs. 210/tonne.

• Capital account expenditure was Rs. 842.73 crore, against Rs. 787.67 crore in 1984-85 and a budget provision of Rs. 851.50 crore.

Outlook and guidance

• Production objective was 196 million tonnes by 1989-90, nearly 46% above 1985-86 output over four years; financial viability and improved coal quality were also priorities.

• The 1986-87 Annual Action Plan and Government MoU set performance targets for key result areas; corporate planning for 1985-90 was being finalised.

• Plans called for computers at company headquarters, major areas and 50 major projects by March 1988, with remaining projects and major units targeted by March 1989.