Shares of Coal India settled 1.86 per cent higher at Rs 159.10 apiece on the BSE.
State-run Coal India on Wednesday said that the company is aiming at investing Rs 40,000-50,000 crore as capital expenditure in the next 4-5 years. The Rs 17,000-crore capital expenditure for the current fiscal is “on track”, said Coal India’s chairman Pramod Agrawal, according to news agency PTI. He also highlighted that the price revision is “inevitable” and may happen soon.
“We have spent Rs 7,000 crore capex so far and our Rs 17,000-crore target for the current fiscal is on track. We will invest around Rs 40,000-50,000 crore in the next 4-5 years. Most of the incremental capex will go into coal production and evacuation”, he said.
On the mismatch between EBITDA (earnings before interest, taxes, depreciation, and amortisation) and the increased capex of the miner, the chairman said that the mining industry is not like any manufacturing entity in which an increase in capital expenses will translate into higher EBITDA.
”We have to carry out such expenditure to maintain production. Since last year only, we have invested heavily in production and evacuation,” said Mr Agrawal.
The world’s largest coal producing company said that the capital expenditure plan will not be affected due to a fall in receivables as it has “enough cash flow” to manage the investments. As of October 2021, the receivables of the coal refiner were at Rs 12,000 crore, down from Rs 19,000 crore in March 2021.
On Wednesday, November 24, shares of Coal India settled 1.86 per cent higher at Rs 159.10 apiece on the BSE. Coal India opened on the BSE at Rs 158.50, registering an intra day high of Rs 161.60 and an intra day low of Rs 155.65, throughout the trading session today.
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