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Coal India Q4 profit falls 18% on quality write-off

LiveMint logoLiveMint 29-05-2014 Rajesh Kumar Singh

New Delhi: Coal India Ltd, the world’s largest producer of the commodity, reported an 18% decline in its fourth-quarter profit following a write-off on account of coal- quality disputes with NTPC Ltd.

Net income dropped to Rs4,430 crore ($753 million), or Rs7.02 a share, in the three months ended 31 March from Rs5,410 crore, or Rs8.58, a year earlier. The median of 31 analyst estimates compiled by Bloomberg was for a profit of Rs4,950 crore. Sales rose to Rs20,000 crore from 19,900 crore.

The company wrote off Rs880 crore as settlement for coal-quality disputes with power producer NTPC.

Total expenses rose to Rs15,470 crore from Rs14,260 crore a year earlier. Sales volumes were little changed at 129.9 million metric tons, while production dropped to 143.20 million tons from 143.30 million tons.

Coal India rose as much as 0.9% to Rs383.90 in Mumbai and traded at Rs382.30 as of 2:12 pm local time. The shares have gained 31% this year, compared with a 15% increase in the benchmark S&P BSE Sensitive Index. BLOOMBERG

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