State run Coal India Ltd has reported an increase of 7.8 per cent rise in consolidated net profit at Rs 4,469 crore during the first quarter of the year till June 2102.
The net sales of the company for the quarter from April to June 2012 rose 13.8 per cent to Rs 16,500 crore compared to Rs 14,499 crore reported in the same quarter of the previous financial year. The company was able to report good growth in the quarter mainly due to higher volume and realization, according to experts.
CIL also took advantage from higher non-operating income to post strong quarterly results. The company has been under pressure to maintain supply to all power generating units in the country even as there is a shortfall in coal.
Meanwhile, the board of Coal India had recently approved a proposal that will result in the state run firm once again ensuring at least 80 per cent supply of coal to all of its contractual partners. The board did not agree on fixing a revised penalty structure and it is likely to meet again soon to device upon the issue. Under the fuel supply agreement (FSA), the company has to supply at least 80% of the fuel contracted to power generating firms that purchase coal from Coal India.
The shares of the company rose 2 per cent in early trade on Tuesday.
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