Coal India Q4 Results: Net Profit Jumps 12% to ₹9,604 Cr, Declares ₹5.15 Final Dividend for FY25
Introduction:
Coal India Q4 Results : Coal India Ltd (CIL), the state-run coal mining behemoth, announced its financial results for the fourth quarter ended March 31, 2025, reporting a strong 12% year-on-year (YoY) growth in consolidated net profit at ₹9,604 crore. This is a notable jump from ₹8,572 crore in the same period last year, showcasing the company’s sustained profitability despite a marginal dip in revenue.
Strong Profitability Amid Slight Revenue Decline
CIL’s consolidated revenue from operations in Q4FY25 stood at ₹37,825 crore, slightly lower than ₹38,213 crore in Q4FY24. Despite this decline, the company’s efficient cost management and operational strategies helped it improve its bottom line.
This quarter’s performance reiterates Coal India’s ability to deliver strong earnings, even in the face of fluctuating demand and pricing pressures. The increase in net profit also reflects better realization and cost control across its subsidiaries.
Final Dividend Boosts Shareholder Sentiment
In a move welcomed by investors, Coal India declared a final dividend of ₹5.15 per equity share for the financial year 2024-25. This dividend is in addition to the interim dividends already paid during the year, reinforcing CIL’s status as a high dividend-paying PSU stock.
With a generous dividend yield of 6.64%, Coal India continues to be a preferred choice among dividend-seeking investors.
Coal India Financial Highlights – Q4FY25
| Metric | Q4FY25 | Q4FY24 | YoY Change |
|---|---|---|---|
| Net Profit | ₹9,604 crore | ₹8,572 crore | ↑ 12% |
| Revenue from Operations | ₹37,825 crore | ₹38,213 crore | ↓ 1.01% |
| Final Dividend (FY25) | ₹5.15/share | ₹- | New Declaration |
Key Financial Ratios and Stock Overview
| Parameter | Value |
|---|---|
| Market Capitalization | ₹2,36,463 Cr |
| Current Market Price | ₹384 |
| 52-Week High / Low | ₹545 / ₹349 |
| Stock P/E | 6.88 |
| Book Value | ₹156 |
| Dividend Yield | 6.64% |
| Return on Capital Employed (ROCE) | 63.6% |
| Return on Equity (ROE) | 52.0% |
| Face Value | ₹10.0 |
Coal India’s valuation remains attractive with a low P/E of 6.88, strong ROCE of 63.6%, and ROE of 52%, reflecting the company’s solid profitability and efficient capital use. With a book value of ₹156, the stock appears reasonably priced for long-term investors.
What’s Driving Coal India’s Performance?
Despite the ongoing global energy transition and increasing focus on renewables, India’s energy mix continues to rely heavily on coal for power generation. As the largest coal producer in the world, Coal India plays a pivotal role in meeting the nation’s energy demands.
Increased focus on domestic coal production, reduced import dependence, and higher productivity per worker have all contributed to Coal India’s operational strength. The government’s push for infrastructure and industrial growth also supports continued demand for coal in the near-to-medium term.
What Lies Ahead for Coal India?
Investors are optimistic about the company’s future as it aligns with India’s energy needs while enhancing operational efficiencies. However, long-term challenges such as decarbonization policies and environmental concerns will require strategic transitions. Coal India is expected to invest in mechanization, digitization, and cleaner coal technologies to stay competitive.
Q&A: Understanding Coal India’s Q4 Results
Q1: What was Coal India’s net profit in Q4FY25?
A: Coal India reported a net profit of ₹9,604 crore in Q4FY25, marking a 12% increase from ₹8,572 crore in Q4FY24.
Q2: Did Coal India declare a dividend for FY25?
A: Yes, Coal India declared a final dividend of ₹5.15 per share for FY25.
Q3: Was there any change in Coal India’s revenue?
A: Yes, revenue from operations declined slightly to ₹37,825 crore from ₹38,213 crore in the same quarter last year.
Q4: How does Coal India’s stock fare for investors?
A: With a dividend yield of 6.64%, low P/E of 6.88, and high ROCE and ROE, Coal India offers strong returns and is attractive for long-term and dividend-focused investors.
Q5: What are the long-term risks and opportunities for Coal India?
A: While Coal India benefits from strong domestic demand, it faces long-term risks from energy transition policies. However, initiatives in cleaner technologies and efficiency enhancements could offer new growth avenues.
Conclusion:
Coal India’s Q4FY25 results highlight its resilience and profitability in a dynamic energy landscape. With solid financial metrics and consistent dividends, the stock remains a strong contender in the PSU space. Long-term investors looking for stable returns and dividend income may find Coal India a worthy addition to their portfolios.
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