Govt to receive Rs 1,426 crore as dividend from Coal India

Govt to receive Rs 1,426 crore as dividend from Coal India

The government will receive Rs 1,426 crore as dividend from Coal India Limited (CIL) after the dry fuel miner on Monday announced an additional final dividend of 35 per cent or Rs 3.5 per share on equity shares of Rs 10 each, an official said.

The total dividend payout for FY'21 stood at Rs 16 per share or 160 per cent.

The government is the largest shareholder with control of 66.1 per cent in the CIL. Its shareholding in the company has reduced from 71 per cent due to continuous dilution in small tranches since March 2019.

However, the CIL's generous dividend policy and high capital expenditure led to a sharp drop in the free cash position of the world's largest miner, the official said.

Coal India's free cash balance (cash, equivalent and bank balances) dropped to Rs 17,309 crore in FY21 from around Rs 28,000 crore in 2019-20 as its cash flow generation could not match the outflow due to lower sales trend last year owing to slowdown and Covid-19 pandemic related disruptions.

E-auction sale for the quarter was 28.92 million tonne that realized Rs 1752 per tonne against Fuel Supply Agreement (FSA) that fetched Rs 1391 a tonne. It sold total raw coal of 165 million tonnes during the quarter.

The CIL on Monday reported Rs 4,588.96 crore consolidated net profit (before other comprehensive income) for the fourth quarter ended March 2021, a marginal decline over the corresponding quarter profit of FY'20 of Rs 4,625.76 crore.