Tuesday, August 16, 2011

Coal India Q1 PAT soars 64% to Rs 4143 cr

Coal India's FY12 first quarter profit soared 64% to Rs 4,143 crore. As it rode on higher coal prices, the company had raised prices in February by up to 30% for some industries to offset higher costs. During the period, sales grew 27% to Rs 14,500 crore.

Talking about the results, NC Jha Chairman of the company said, "If you look at our Q1 performance there has been 64% increase in PAT. So I don’t perceive any situation in which there is a need for increasing price right now. As and when we finalise our wages we will consider whether there is a need to increase the prices or absorb the same thorugh existing revenues."

On the demand growth, Jha stressed that till now there is no sign of downtrend. "The power sector which is the largest taker of coal still has about 17 power stations under critical stock position. Even though there is about 13mt coal stock at the power house end, there is no dearth of demand. The only issue is how much coal we are able to push to the consumers."

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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