CIL posts 400% rise in profit; to launch IPO in July

CIL posts 400% rise in profit; to launch IPO in JulyPublic sector coal miner Coal India Ltd. (CIL) posted a four-fold rise in its bottom-line for the financial year 2009-10. The company booked a net profit of Rs.8,312 crore for the fiscal as compared to Rs.2,078 crore in the previous financial year.

The company’s top-line at Rs.52,088 crore witnessed a rise of just 13.74 per cent over the year-ago period, Partha Bhattacharya, the company’s Chairman and Managing Director, said in a statement.

On the production front the company missed its target of 435 million tones by a whisker. As per CIL, it produced 431.27 million tonnes during the year due to infrastructural bottlenecks like lack of railway lines at a few places and delay in clearance in a few areas like environment and forest at some sites.

Informing about the government’s disinvestment plans for the company he revealed that CIL was expected to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India by the middle of June 2010 and the public offer would be open for subscription by sometime in the last week of July and early August.

While the government is planning to 10 per cent of its stake in CIL through this IPO, one per cent of the stake to be issued is reserved for the company’s employees.