Coal India on Monday reported a 7.8 per cent rise in its consolidated net profit to Rs 4,469 crore for the first quarter ended June 30 on the back of higher sales and implementation of a new pricing mechanism.
The PSU's net profit for the same period in the last fiscal was Rs 4,144 crore, the company said in a filing to the Bombay Stock Exchange.
The net sales of the company for the April-June quarter saw an increase of 13.8 per cent at Rs 16,500 crore, against Rs 14,499 crore for the same period in 2011-12, it said.
"Higher sales are due to conversion to GCV (new pricing mechanism, higher offtake yield and higher realisation from e-auction," Coal India Chairman and Managing Director S Narsing Rao said.
However, CIL's expenses rose significantly to Rs 12,221 crore, over Rs 10,113 crore in the same quarter of the previous fiscal.
Higher expenses was a result of increased benefits to the employees at Rs 6,130 crore.
The company produced 102.4 million tonnes (MT) of coal in the April-June period against 96.3 MT for the same period in the last financial year.
When asked whether the board approved the model fuel supply agreement to be signed with power firms, with significant changes in the penalty clause for failing to supply to them a minimum 80 per cent quantity of the t
otal fuel contract, Rao said, "Today it is not in a signable form."
CIL in its last board meeting has agreed to paying penalty of 1.5-40 per cent on failing to supply the committed quantity of the fuel to power firms.
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