National miner Coal India Ltd (CIL) noticed its revenue falling by 23.9 per cent within the monetary yr 2020-21 marred with low demand from each energy and steel sector on account of Covid pandemic. The firm’s web revenue stood at Rs 12,720 crore in FY21, down from Rs 16,700 crore a yr earlier than.
This is a steep fall for the CIL because it battles falling coal demand. During 2016-17, its revenue fell by 30 per cent and recovered in 2018-19 with a greater than 100 per cent soar. However, each revenue and revenue ranges of FY20 are near 2017 ranges.
The firm’s revenue fell by 8.5 per cent over the last fiscal. During 2020-21, the whole revenue was Rs 93,818 crore. Its income from operations additionally noticed a decline of 6.3 per cent yr on yr and was Rs 90,026 crore throughout FY21.
The firm’s worker expense, although all the way down to a three-year low, elevated over the last monetary yr. It stood at Rs 38,697 crore. CIL is taking a look at chopping down its worker expense because it reduces work power.
In an interview with this paper in March this yr, Pramod Agarwal, CMD, CIL stated, “Major cost cuts would be effected through a steadily falling headcount to the tune of 13,000 to 14,000 employees per annum due to superannuation. The fall is likely to increase further making the company leaner and fitter. We plan to stay away from opening mines that attract large manpower induction, meaning employment offers against land acquisition. Our overall expenditure fell by Rs 1,838 crore or 3.3 per cent during the year till December 2020.”
During the yr, CIL suffered a decline in demand of coal majorly from its energy clients. Electricity demand fell as a lot as 24 per cent throughout the peak demand summer time months of FY21 on account of Covid induced lockdowns, slowdown in business and industrial actions. The second wave of Covid in February impacted the coal demand additional.
The firm reported a decline of 0.9 per cent in coal manufacturing and 1.2 per cent in offtake. CIL’s manufacturing stood at 596 million tonne and offtake at 574 million tonne over the last monetary yr. The manufacturing quantity of the corporate has gone again to 2017 ranges and it was unable to fulfill the goal of crossing 600 million tonne of manufacturing.
In the assertion submitted to the exchanges, CIL stated, “The company is taking continuous measures to combat the adverse impact of COVID-19 and has implemented manifold measures for ease of doing business. The company has considered the possible effects that may arise due to pandemic in the preparation of the financial results including the recoverability of carrying amounts of financial and non-financial assets as on 31st March 2021. The company will continue to closely monitor any material changes arising out of future economic conditions and the resultant impact on its business.”
CIL’s Board of Directors have really useful a closing dividend of Rs 3.50 per fairness share for FY 2020-21 and is topic to the approval of shareholders within the Annual General Meeting (AGM) of the Company to be held for the monetary yr 2020-21. This is a significant discount from final yr when CIL paid a dividend of Rs 12 per fairness share) totalling Rs 7,395 crore.