Coal India Q3 Results: Net Profit Declines 17% YoY to Rs 8,506 Crore, Beats Market Expectations
Coal India Limited (CIL), the state-owned mining giant, has reported its financial results for the third quarter of FY25, showing mixed performance with better-than-expected profits despite a year-over-year decline. The company also announced an attractive interim dividend for its shareholders.
Key Financial Highlights
For the quarter ending December 2024, Coal India reported the following key figures:
- Net Profit: Rs 8,506 crore, marking a 17% decrease from Rs 10,253 crore in Q3FY24, but surpassing market estimates of Rs 8,083 crore
- Revenue from Operations: Rs 35,780 crore, showing a marginal 1% decline from Rs 36,154 crore in the year-ago period
- Total Expenses: Rs 26,202 crore, up from Rs 25,133 crore in Q3FY24
Sequential Performance Shows Improvement
When compared to the previous quarter (Q2FY25), Coal India demonstrated significant improvement:
- Net profit surged by 35% from Rs 6,289 crore in Q2FY25
- Revenue increased by 17% from Rs 30,672 crore
- Expenses rose from Rs 24,162 crore in the previous quarter
Interim Dividend Announcement
In a move that will benefit shareholders, Coal India has declared:
- Dividend Amount: Rs 5.60 per equity share
- Record Date: January 31, 2025
- Payment Deadline: February 26, 2025
Market Response
The earnings announcement came after market hours on January 27, 2025. Coal India's shares closed at Rs 374 on the NSE, recording a decline of 2.4%, aligning with the broader market weakness.
Analysis
While the year-over-year profit decline of 17% might appear concerning, Coal India's performance has shown resilience by exceeding market expectations. The sequential growth in both revenue and profit indicates improving operational efficiency and market conditions. The announcement of an interim dividend also reflects the company's commitment to shareholder returns despite challenging market conditions.
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