Coal India Q3 Result Net Profit Falls 17% To ₹8,491 Crore, Announces Second Interim Dividend

Coal India Q3 result: Net profit falls 17% to ₹8,491 crore, announces second interim dividend

Coal India Q3 Results: Net Profit Falls 17% to ₹8,491 Crore Amid Lower Sales, Declares Second Interim Dividend

State-owned Coal India Limited (CIL) reported a 17.4% year-on-year (YoY) decline in its consolidated net profit, which stood at ₹8,491.22 crore for the third quarter (Q3 FY25) ending December 31, 2024. The drop in profits was primarily due to lower sales and higher expenses.

In the same quarter last year (Q3 FY24), Coal India had posted a net profit of ₹10,291.71 crore.

Despite the drop in profits, the company announced a second interim dividend of ₹5.60 per equity share for the financial year 2024-25. The record date for this dividend has been set as January 31, 2025, and the payment will be made by February 26, 2025.

Let’s take a detailed look at Companies Q3 FY25 performance, financial metrics, and future outlook.


Coal India Q3 FY25 Financial Performance

1. Decline in Net Profit by 17.4% YoY

Company net profit fell to ₹8,491.22 crore in Q3 FY25, down 17.4% YoY from ₹10,291.71 crore in Q3 FY24. The decline in profit was due to:

  • Lower coal sales volume
  • Slight dip in operational revenue
  • Rising expenses

Despite these challenges, Coal India remains a dominant player, contributing over 80% of India’s total coal production.

2. Revenue from Operations Falls 1.04% YoY

Company total revenue from operations stood at ₹35,779.74 crore, marking a 1.04% decline compared to ₹36,153.97 crore in Q3 FY24.

The drop in revenue was mainly due to:

  • A decline in coal demand from power and industrial sectors
  • Reduced coal dispatches during the quarter
  • Pricing pressures due to market dynamics

3. Sales Revenue Declines 1.98% YoY

Company sales revenue declined to ₹32,358.98 crore, showing a 1.98% YoY drop from ₹33,011.11 crore in Q3 FY24.

Lower sales revenue was driven by:

  • Decreased coal offtake from power plants
  • Lower international coal prices impacting realizations
  • Higher inventory levels at mines

Rising Expenses Impact Profitability

1. Total Expenses Increase by 4.25% YoY

Companies total expenses in Q3 FY25 increased to ₹26,201.55 crore, marking a 4.25% YoY rise from ₹25,132.87 crore in the same quarter last year.

2. EBITDA Declines by 5.03% YoY

Company Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹12,317.2 crore, reflecting a 5.03% YoY decline from ₹12,970.7 crore in Q3 FY24.

3. EBITDA Margin Contracts to 34.4%

The company’s EBITDA margin shrank to 34.4% in Q3 FY25 from 35.9% in Q3 FY24.

The contraction in EBITDA margin was due to:

  • Higher employee benefit expenses
  • Increase in mining and operational costs
  • Decline in average coal realization per tonne

Coal India’s Second Interim Dividend

Despite the drop in profits,Companies Board of Directors declared a second interim dividend of ₹5.60 per equity share with a face value of ₹10 each for FY25.

  • Record Date: January 31, 2025
  • Dividend Payment Date: On or before February 26, 2025

The interim dividend is in line with Coal India’s policy of rewarding shareholders while ensuring financial stability.


Stock Market Performance & Valuation

Coal India’s stock ended the day in the red at ₹374.00 per share, down 2.36% on the National Stock Exchange (NSE) on January 27, 2025.

However, the company’s Q3 FY25 results were declared after market hours, so the actual stock reaction is yet to be seen in the next trading session.

Market Capitalization

As of January 27, 2025, Coal India’s total market capitalization stood at ₹2.31 lakh crore on the NSE.


Key Business Highlights & Industry Trends

1. Coal India’s Market Dominance

  • Coal India contributes over 80% of India’s total coal production.
  • The company plays a critical role in ensuring India’s energy security.
  • It supplies coal to thermal power plants, steel plants, and other industrial consumers.

2. Coal Demand & Supply Challenges

  • Coal India faced muted demand from power and industrial sectors, affecting its sales.
  • The global coal market saw a decline in prices, impacting realization per tonne.
  • The company had to manage rising mining costs, which affected profit margins.

3. Government’s Push for Renewable Energy & Impact on Coal

  • India is aggressively expanding renewable energy capacity (solar, wind).
  • Coal continues to remain the primary energy source, but its long-term demand outlook is uncertain.
  • Coal India is diversifying into renewable energy projects to mitigate future risks.

Future Outlook & Growth Strategy

1. Focus on Production & Efficiency

  • Coal India is targeting record production levels in FY25 to meet rising domestic coal demand.
  • Investments in modern mining technologies will improve operational efficiency.

2. Diversification into Renewable Energy

  • The company is exploring solar and wind energy projects to reduce dependence on coal revenues.
  • Joint ventures with government agencies and private players are being considered for green energy projects.

3. Pricing Strategy & Cost Management

  • Coal India may increase coal prices to offset rising costs and improve profit margins.
  • It is also focusing on cost-cutting measures to enhance EBITDA margins.

4. Dividend Policy & Shareholder Value

  • Coal India remains committed to regular dividend payouts, maintaining its attractiveness for long-term investors.

Conclusion: Coal India Faces Challenges but Remains Strong

Company reported a 17.4% YoY decline in net profit at ₹8,491 crore in Q3 FY25, affected by:

  • Lower coal sales (-1.98% YoY)
  • Declining revenue (-1.04% YoY)
  • Rising expenses (+4.25% YoY)

Despite these challenges, the company announced a ₹5.60 per share interim dividend, highlighting its commitment to shareholder returns.

With ongoing expansion plans, efficiency improvements, and diversification into renewables, Coal India remains a strong player in India’s energy sector.

However, its future performance will depend on:

  • Coal demand trends
  • Government policies on renewable energy
  • Ability to manage rising costs

Investors will closely watch Coal India’s next quarter performance and strategic moves in 2025.

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