World’s largest mining company Coal India Limited on Tuesday said that it will reduce 5% in manpower every year for the next 5-10 years to reduce costs.
Currently, the mining company has 2,72,445 employees since FY20, CIL stated in the earnings call a day after declaring its March quarter results.
The company also stated that it would close unviable mines. There are 158 underground mines that employ 43% of the workforce whereas contributes 5% of total production. “Action is being taken to close the unviable mines in CIL in a phased manner. Production from 11 such Underground Mines has already been suspended,” CIL further stated.
Under its cost control measure, the company also informed that for efficient operationalization of greenfield projects, CIL devised a transformative plan to engage MDO for 15 projects (10 OC and 5 UG) with a combined total targeted capacity of about 160 MTY. Out of the 15 projects, Work Order has been issued for 2 projects of 45 MTY. Remaining projects are at various stages of tendering and approval of NIT.
Currently, the Coal India stock at BSE trades 1.10% lower at ₹ 157.60 apiece.
CIL on Monday reported a consolidated net profit of ₹4,588.96 crore, a dip of 0.8%, in the quarter ended 31 March, 2021. The company had posted a profit of ₹4,655.76 crore in the year-ago period.
The company’s board has approved a final dividend of ₹3.50 per equity share of face value of ₹10 each for the financial year 2020-21, CIL said in a regulatory filing.
Its consolidated sales in the January-March period declined to ₹24,510.80 crore, from ₹25,597.43 crore in the March quarter of 2019-20, the filing said.
However, the expenses of the company during the January-March 2021 quarter dropped to ₹21,565.15 crore from ₹22,373.046 crore in the year-ago period.
The production of CIL during the quarter dropped to 203.42 million tonnes (MT) over 213.71 MT in the corresponding quarter of 2020.
The company’s offtake during the January-March period was at 164.89 MT, over 164.33 in the corresponding quarter of 2020.
CIL accounts for over 80 per cent of domestic coal output. The company is eyeing one billion tonnes of output by 2023-24.
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