The Hindu Business Line : Coal India may hike prices to arrest falling margins

Explaining the reasons for the lower profit in the fiscal gone by, compared to 2005-06, Mr Partha S. Bhattacharjee, Chairman, told newspersons on Thursday that the profit was Rs 464 crore less primarily because of two reasons: non-revision in coal prices because of which inflationary impact on costs remained uncovered, and imposition of stay by the Supreme Court on e-marketing of coal produced by CIL and its production subsidiaries.

CIL as a whole made a profit before tax and dividend of Rs 8,212.69 crore (provisional) during 2006-07 against a target of Rs 7,013.91 crore. The company had clocked profit of Rs 8,676.72 crore in 2005-06.

Till 2004-05 ECL and BCCL were incurring losses. In 2005-06, with the turnaround of both these companies, all subsidiaries of CIL started making profits.

CIL paid the highest ever dividend of Rs 1,500 crore to the Government during 2006-07. It constitutes 23.75 per cent of the company's paid-up equity of Rs 6,316 crore.

The dividend was paid in two instalments of Rs 800.28 crore and Rs 699.72 crore each.

Last year, CIL paid Rs 1,263 crore as dividend.

The coal stocks have increased by 10.04 million tonnes (mt) during the year, touching 42.91 mt as on March 31, 2007.

Over Burden Removal (OBR) in opencast mines during the year was 540.1 million cubic m (533.95 million cubic m).

Productivity, measured in terms of output per main shift (OMS), was 3.55 tonnes per man shift, 8.9 per cent higher than 3.26 tonnes earlier.

There has been substantial improvement in opencast productivity with 8.12 tonnes per man shift (7.51 tonnes).

Total sales realisation was Rs 35,700 crore. Adjustment was around Rs 700 crore. Against a total estimated billing of Rs 36,200 crore, the realisation including adjustments was about Rs 36,400 crore, i.e., 100.7 per cent of billing.

Coal India's outstanding dues reduced by Rs 246 crore to Rs 2,400 crore at the end of the year.