Coal India approves payment of interim dividend for FY22
Shares of Coal India (CIL) surged in Tuesday’s opening deals after India’s largest coal miner received board approval for payment of interim dividend at Rs 9 per share of the face value of Rs 10 as against Rs 7.5 per share announced last year.
The PSU company has fixed Friday, December 7, 2021 as the record date for the purpose of payment of interim dividend on the equity shares for the financial year 2021-22. Whereas, the date of payment of interim dividend is on and from December 21, 2021.
Meanwhile, CIL’s Q2FY22 e-auction premiums were disappointing. However, the management highlighted that the current premium is over 50% compared to the 15.3% reported in its Q2FY22 result. It has re-started e-auction to non-regulated sectors, which should result in improved profitability.
Management expects a price hike to offset an increase in wages, given the current strong demand environment and high international coal prices.
ts dispatch guidance for FY22 has been increased to 660-670mt compared to its previous guidance of 640mt. This is in light of a recovery in demand, especially from the power sector. With a recovery in demand from the power sector, supplies to non-regulated sectors had been squeezed. The same has now begun to recover as both production and dispatches have improved post monsoon.
The supply of coal to the power sector by CIL during the last month also increased 21.7 per cent to 47.67 MT, over 39.17 MT in the year-ago period, it said.
Coal India accounts for over 80% of the domestic coal output.
The company, which is eyeing one billion tonne of fuel output by 2023-24, will pump over Rs 1.22 lakh crore in projects related to coal evacuation, exploration and clean coal technologies by 2023-24.
Out of this proposed spend, CIL has planned to invest Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure and Rs 29,461 crore on project development by 2023-24.
The company will also invest Rs 32,199 crore on diversification and clean coal technologies, Rs 1,495 crore on social infrastructure and Rs 1,893 crore on exploration works.
The investment of Rs 1.22 lakh crore will be utilised to fund a total of 500 projects.
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