Coal India announces dividend of ₹10.25 per share; Q2 profit down 32% amid weak demand in favourable monsoon

For the second time in the ongoing financial year, state-owned miner Coal India announced an interim dividend of ₹10.25 for each equity share alongside their financial results for the second quarter Tuesday. The miner informed that the payment would be made by November 28. However, the miner’s second quarter results did not inculcate the same enthusiasm with profits slipping 32% on a year-over-year basis to ₹4,263 crore amid weaker demand for the fossil fuel commodity in a favourable monsoon during the period of reporting. 

The Kolkata-headquartered miner’s overall revenues also declined approximately 3.2% YoY to ₹30,186.70 crore during the period. Additionally, the miner’s realisation from e-auction sales also took a 6.6% hit from the corresponding period last year to ₹2,292.40 for each tonne. 

Monsoons are not typically the brightest months for miners for it becomes unsafe to work in mines during periods of heavy rain. Coal India’s production in the second quarter this year declined 4% YoY to 145.83 MT while offtake lowered 1% to 166.03 MT. 

Scrips of Coal India closed 2.36% lower at ₹382.05 apiece on the BSE and 2.16% lower at ₹382.95 per share on the NSE.