Coal India's profit declines due to wage provisions

10 Aug 2023 CW Team

Coal India, the world's largest coal miner, has reported a second consecutive quarterly decline in profits, attributing the drop to increased provisions for wage hikes. The company's consolidated net profit for the first quarter ending June 30 fell by almost 10%, amounting to 79.71 billion rupees ($962.4 million), as stated in an official exchange filing. This follows a 17.3% profit decrease in the previous quarter, interrupting a trend of over 45% profit growth in each quarter since the end of 2021.

The company revealed that its provisions for wage hikes surged to 8 billion rupees from 3.24 billion rupees compared to the previous year, thereby impacting its profit margin. The deceleration in revenue growth also contributed to the challenging financial landscape, with revenue expanding by a mere 2.5% to 359.83 billion rupees, influenced by stabilized coal prices during the quarter.

Despite heightened coal demand in India, the second-largest global consumer and importer of coal, the company encountered lower realization per tonne of coal at 3,740.84 rupees in the auction segment, reflecting a 13.8% drop from the prior year.

Coal India managed to surpass its annual production target of 700 million tonnes in the fiscal year 2023, a feat not achieved since fiscal 2006, amid increased demand driven by power plants stocking up for heightened summer electricity consumption.

Before the release of the results, the company's shares experienced a 1.2% decline. However, during the April-June quarter, the stock had risen by around 8%, slightly below the 8.2% rise observed in the Nifty energy index during the same period.

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..