Coal India Q1 profit declines over 14% to Rs 3,065 cr on weak sales

New Delhi: State-owned Coal India Tuesday reported 14.7 percent fall in consolidated net profit at Rs 3,065.28 crore for the quarter ended June 30, 2016, due to decline in sales. CIL had posted a consolidated net profit of Rs 3,596.93 crore in the year-ago period. Consolidated profit includes profit of jointly controlled entities and associates. [caption id=“attachment_2244694” align=“alignleft” width=“380”]  Reuters[/caption] Net sales of the company during the quarter declined by 6.1 percent to Rs 17,796.05 crore, the coal major said in a filing to BSE. Total expenses of the PSU declined to Rs 14,834.20 crore in April-June this year, from Rs 15,320.81 crore in the corresponding quarter of previous fiscal. Its production during the quarter increased by 3.56 percent to 125.67 million tonnes (MT) compared to 121.35 MT in the same quarter of previous fiscal. On the standalone basis, the company’s net profit for the period plunged to Rs 3.68 crore in April-June against Rs 487.10 crore in the year-ago period. Its standalone net sales dropped to Rs 22.84 crore in April-June 2016 from Rs 37.22 crore in the corresponding quarter of previous fiscal. There was no dividend income during the quarter under review as against that of Rs 442.80 crore in the quarter ended on June 2015, the filing said. Coal India accounts for over 80 percent of domestic coal production. The government has set a production target of 598 million tonnes for CIL for the ongoing fiscal. The company is looking to double its production to 1 billion tonnes by 2020.