CIL's FY'10 profit quadruples due to e-auctioning scheme, at Rs 8,312 cr

State-owned coal utility, Coal India Limited (CIL), has posted a 399.88% surge in its profit after tax (PAT), which reached Rs 8,312.40 crore for the financial year 2009-10, against a profit of Rs 2,078.70 crore recorded a year ago. However, after deducting the Rs 2,210 crore paid to the Union Government as dividend for the last fiscal, along with the tax of Rs 726.43 crore on the dividend payments received from the subsidiary companies, the retained profit of CIL stands at Rs 5,357.97 crore, as against the loss of Rs 176.05 crore recorded in the previous fiscal. Correspondingly, the net worth of the company has gone up, from Rs 19,165.04 crore at the end of FY 2008-09, to Rs 24,541.01 crore, as of March 31, 2010. Pertinently, CIL contributed a total of Rs 7,020.51 crore, including corporate tax, dividend and dividend tax, to the Central exchequer during the just-ended fiscal, as against the Rs 5,920.15 crore paid during 2008-09.

The aggregate profit before tax (PBT) of CIL for the 2009-10 fiscal stood at Rs 12,396.47 crore, which is more than two times the Rs 5,744.10 crore recorded in the previous fiscal. In terms of contribution of subsidiary companies to the PBT, the highest contributor was Northern Coalfields Limited (NCL), with a PBT of Rs 3,775.45 crore, followed by Mahanadi Coalfields Limited (MCL) with Rs 3,010 crore and South Eastern Coalfields Limited (SECL) contributing Rs 2,743.32 crore. Other subsidiaries, namely Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) contributed PBTs of Rs 1,500.26 crore, Rs 601.04 crore, Rs 402.29 crore and Rs 152.36 crore, respectively, to the aggregate PBT of CIL.

This remarkable improvement in the financial performance of the coal major during FY 2009-10 can be significantly attributed to the fact that CIL sold around 43.08 million tonnes of coal under the e-auctioning scheme, yielding an additional revenue of Rs 2,311.88 crore over the notified coal price. Additional revenue earnings have been highest in SECL, at Rs 780.45 crore, followed by Rs 612.72 crore in MCL, Rs 276.44 crore in CCL, Rs 222.53 crore in WCL, Rs 152.51 crore in BCCL and Rs 118.27 crore in ECL. However, in terms of percentage, NCL made the highest gain of 132.91 %, followed by 96.32% in SECL, 50.71% in CCL, 46.28% in MCL, 45.64% in BCCL and 40.58% in ECL.