Sustaining strong financial fundamentals, Coal India’s (CIL) profit after tax (PAT) for FY 2022-23 posted a massive 62 per cent growth at Rs. 28,125 Crores compared to Rs. 17,378 Crores of FY '2022. This was despite provisioning Rs. 8,153 Crores in the accounts in 2022-23 towards wage revision of CIL’s non-executive manpower. Climbing to an all-time high, the annual PAT bested the previous high of Rs.17,464 Crores recorded in 2018-19 by 61 per cent. Higher volume sales and increased premiums in e-auction bolstered the company’s profitability.
CIL recorded PBT of Rs. 7,642 Crores and PAT of Rs. 5,528 Crores in Q4 FY 2022-23. Both PBT and PAT have shrunk by 18 per cent, compared to the same quarter of FY '22 primarily due to increased provision towards the wages in NCWA-XI. PAT would have been the highest ever profit in any quarter had the provision not been made.
CIL lifted its profit into higher orbit despite the company capping its coal prices for over the past five years amidst rising input costs, especially diesel and explosives and increased wage cost due to provisioning in the accounts.
Coal India final dividend
The company’s board that met on May 7, recommended the payment of a final dividend of Rs. 4 per share. Earlier in two tranches a total dividend of Rs.20.25 per share was already paid out.
Though e-auction sales at 16.40 MTs were lower by 41 per cent in volume terms in Q4 compared to 27.65 MTs of similar quarter FY '22, higher premiums under the e-window helped CIL in cranking up e-auction sales by Rs. 690 Crores. The realization per tonne of coal was Rs. 4,526 under auction segment in Q4 against Rs. 2,434 in the same quarter of FY '22. The jump was Rs. 2,092 per tonne or 86 per cent.
Coal India volume sales
Higher volume sales by 17.34 MTs and better average realization under FSA resulted in a net impact of around Rs.3,879 Crores in Q4. FSA sales increased to 167.45 MTs in Q4 FY '23 compared to 150.11 MTs of preceding fiscal’s Q4. Realization per tonne of coal under FSA category was Rs. 1,550, an increase of 5 per cent, compared to Rs. 1,470 per tonne of Q4 FY '22. Whereas, for the entire 2022-23 realization per tonne of coal under e-auction was Rs. 4,841 against Rs. 1,879 per tonne in FY '22, up 157.6%. The same in case of FSA sales was Rs. 1,475 compared to Rs.1,406 of FY’22.
Coal net sales
The company’s net sales were highest ever for Q4 as well as for the entire FY '23. Net sales at Rs. 35,161 Crores in Q4 of FY’23 were up by 17 per cent compared to Rs. 29,985 Crores of fourth quarter FY '22. For the full year of 2022-23 CIL’s net sales was Rs. 1,27,627 Crores. This is a jump of 27 per cent compared to Rs. 1,00,563 Crores of preceding fiscal.
EBITDA
Earnings before interest, tax, depreciation, amortization, impairment (EBITDA) - the measure of a company’s financial performance – has risen by 49% during FY’23 to Rs. 40,291 Crores from Rs.26,974 Crores in FY’22.
