Coal India Ltd Faces Profit Decline Amidst Revised Production Targets

Coal India Ltd reported a 17.4% decline in net profit due to reduced sales in Q3 FY25. Despite production growth, targets have been revised downwards. Sales fell to Rs 32,358.98 crore, while expenses rose. Standalone profit increased slightly, and a second interim dividend was announced.

Coal India Ltd, the state-owned coal giant, reported a 17.4% decline in consolidated net profit for the quarter ended December 2024, primarily driven by reduced sales. The net earnings fell to Rs 8,491.22 crore, down from Rs 10,291.71 crore in the previous year, according to a filing with BSE.

Sales for the October-December period dropped to Rs 32,358.98 crore from Rs 33,011.11 crore a year earlier, while total expenses increased to Rs 26,201.55 crore from Rs 25,132.87 crore. On a standalone basis, CIL's profit rose to Rs 9,646.26 crore from Rs 9,316.40 crore.

The board declared a second interim dividend of Rs 5.60 per share, as coal output increased to 543.36 million tonnes in the first nine months of the fiscal year. However, production targets have been revised to 806-810 million tonnes, lower than the previous target of 838 million tonnes.

(With inputs from agencies.)