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New UserCoal India announces 2nd interim dividend for 201617
27 Mar 2017
The stateowned Coal India announced another interim dividend of Rs 1.15 per
share of face value Rs 10 on Sunday.
Following instructions from the government, Coal India (CIL) at a scheduboard meet on
Sunday decided to shell out another Rs 714 crore as dividend.
Out of this, government receives Rs 563 crore in the form of dividend and another Rs 145
crore in the form of dividend distribution tax. Payment to the government through this round
would now stand at around Rs 708 crore.
Total payment to the government from Coal India stable this year till now would be a
cumulative figure of Rs 15,890 crore. After paying the government, Coal India’s total reserve position dips from Rs 38,000 crore in March
2016 to Rs 25,000 crore.
Earlier this month, CIL declared an interim dividend of Rs 18.75 per share of face value Rs 10 per share. Government being the single
largest shareholder in the company with a 79.11 per cent stake was entitled to receive Rs 9,208 crore. It will also earn Rs 2,369 crore as
dividend distribution tax. Additionally, Coal India executed a share buyback in in October last year which earned the Centre around Rs
3,600 crore.
"Payout to the government for Coal India totals to around Rs 15,890 crore in 201617," said a senior Coal India executive. This would be
around 8 per cent less than last year when the public sector undertaking (PSU) paid Rs 17,308 crore by way of dividend and distribution
tax. No buy back was executed in 201516.
Nevertheless, the company will have to inshell out a total of Rs 12,354 crore for paying dividend to all shareholders. This includes Rs
11,639 crore on account of an interim dividend declared during early March.
The PSU’s cumulative out go on account of dividend, tax and the buyback thus is estimated at Rs 18,473 crore. In contrast, during 2015
16, the company paid around 12 per cent more at Rs 20,830 crore through a mix of dividend and dividend distribution tax. Nevertheless,
Coal India’s capability to pay more than last year was limited by falling profits during the year. Net profits registered a 20 per cent fall
during the quarter ended December 2016 when compared to the previous corresponding quarter of December 2015.
Less than anticipated growth in demand for power resulted in huge stock pile at power plants, its primary consumers. Stocks had touched
70 million tonnes. This forced Coal India to produce less than its production targets.
Source: Economic Times