Coal India Q4 FY24 Results: Profit Soars 26%, ₹25.5 Total Dividend
Coal India Limited (CIL), the state-owned coal mining behemoth and the largest coal producer in India, has outperformed market forecasts with an impressive financial performance in the fourth quarter of FY24. The company reported a consolidated net profit of ₹8,682 crore—marking a 26% year-on-year (YoY) surge—despite facing a slight decline in revenue.
Coal India’s Strong Finish to FY24
In Q4 FY24, Coal India, the state-run coal giant, demonstrated impressive financial strength, achieving solid profit growth despite challenges in revenue. The company reported a 26.2% year-on-year surge in consolidated net profit, reaching ₹8,682.2 crore, surpassing market forecasts. This result outpaced analyst predictions, as highlighted by sources like NDTV Profit and CNBC TV18.
The profit surge came even as consolidated income declined slightly to ₹39,654.5 crore, down from ₹40,359 crore in the same period last year. Revenue from operations fell nearly 2% YoY to ₹37,410 crore, according to Economic Times and Moneycontrol.
Dividend Bonanza: ₹25.5 Per Share for FY24
Coal India’s board approved a final dividend of ₹5 per share, which will be paid out in addition to the interim dividends of ₹15.25 and ₹5.25 already declared earlier in FY24. This brings the total dividend payout to ₹25.5 per share for the financial year.
This hefty payout underscores Coal India’s commitment to shareholder returns, despite moderate topline performance. The final dividend is pending for approval by shareholders it will get possibly in coming Annual General Meeting.
Operational Highlights
Coal India upheld steady operational efficiency, producing 241.75 million tonnes of coal during the quarter, sustaining the growth observed in prior periods. The company continues to dominate the domestic coal market, supplying nearly 80% of India’s coal needs.
Production efficiency, cost control, and better realization from e-auction sales contributed significantly to the bottom-line growth. The company also leveraged better pricing in the non-power sector, which supported profitability.
Market Reaction and Analyst Takeaways
The Q4 performance triggered a positive response from market analysts and investors alike. Brokerage houses revised their target prices upward following the earnings announcement, citing strong profit visibility and consistent dividend payouts.
NDTV Profit reported that analysts appreciated the beat on net profit and the disciplined capital expenditure that helped maintain free cash flows. The high dividend yield continues to be a major draw for long-term investors.
Coal India shares reacted modestly post-announcement, as much of the positive news had already been priced in. However, the stock remains a high-yielding defensive option in volatile markets.
Challenges Ahead
Despite the strong quarter, Coal India faces several challenges going forward. Declining demand from the power sector, rising competition from renewable energy, and environmental regulations could pressure margins and growth.
Moreover, any increase in global coal prices or disruption in logistics could impact coal availability and pricing strategies. The company must also ramp up efforts to diversify into cleaner energy options to align with India’s long-term sustainability goals.
Conclusion
Coal India has capped off FY24 with strong earnings and a generous dividend payout, reinforcing its position as a reliable and profitable public sector undertaking. While revenue growth remained muted, disciplined cost management and strong operational performance enabled a substantial jump in net profit.
Investors and analysts alike have applauded the company’s financial prudence and shareholder-friendly approach. As India’s energy transition picks up pace, Coal India will have to balance its traditional strengths with future readiness.
The image added is for representation purposes only
