Coal India Dividend Overview and Financial Performance


Coal India Limited (CIL), the largest coal producer globally, has been a consistent performer in rewarding its shareholders with generous dividends. This reflects the company’s sound financial health and commitment to sharing its profits. Here’s a detailed analysis of its recent dividend announcements and financial performance.

Recent Dividend Announcements

  1. October 2024: A first interim dividend of ₹15.75 per share was declared, with an ex-dividend date of November 5, 2024.
  2. May 2024: Final dividend of ₹5 per share announced, with an ex-dividend date of August 16, 2024.
  3. January 2024: Second interim dividend of ₹5.25 per share, with an ex-dividend date of February 20, 2024.
  4. October 2023: First interim dividend of ₹15.25 per share, with an ex-dividend date of November 21, 2023.

Over the last 12 months, Coal India has paid a total dividend of ₹26 per share, which equates to an attractive yield of around 6.73%, based on its current share price of approximately ₹386.55.

Key Financial Highlights

  1. Revenue Growth:

    • Coal India reported a revenue of ₹1.51 lakh crore in FY24, reflecting steady growth, driven by increased production and sales.
    • This is a significant rise from ₹1.28 lakh crore in FY23.

  2. Profitability:

    • The company posted a net profit of ₹29,245 crore for FY24, compared to ₹28,125 crore in FY23.
    • Strong profit margins enable it to maintain robust dividend payouts.

  3. Production Output:

    • In FY24, Coal India achieved a record coal production of 750 million tonnes (MT), marking a 6% growth over FY23's production.

  4. Free Cash Flow:

    • With a healthy free cash flow of ₹12,800 crore in FY24, Coal India continues to fund its dividend policy and other operational requirements efficiently.

Why Consider Coal India for Investment?

  • Dividend Consistency: Regular and substantial dividends make CIL an appealing choice for income-focused investors.
  • Strong Financial Base: A steady growth in revenue, profits, and cash flow underpins the company’s ability to reward shareholders.
  • Market Leadership: Being the world’s largest coal producer, CIL is well-positioned to benefit from strong domestic coal demand.

Risks to Consider

  • Regulatory Challenges: Environmental and policy changes could impact coal production and consumption.
  • Dependence on Fossil Fuels: Long-term transition to renewable energy might affect Coal India’s growth trajectory.

Conclusion

Coal India continues to stand out as a reliable investment choice for investors seeking consistent income through dividends. Its solid financials, market dominance, and government backing offer stability, but potential risks warrant a careful evaluation.

Disclaimer: This content is for informational purposes only. Please consult a financial advisor before making investment decisions.

Comments

Post a Comment

Popular posts from this blog

Ather Energy IPO: Key Details, Grey Market Premium (GMP) Update, and Should You Subscribe?

Image
Ather Energy, one of India’s leading electric two-wheeler (E2W) manufacturers, has officially opened its Initial Public Offering (IPO) for subscription today, April 28, 2025. Known for its innovative e-scooters like the Ather 450 series and the recently launched family-oriented Rizta model, Ather's public issue has garnered significant attention among investors. Here's an in-depth look at the IPO details, current Grey Market Premium (GMP) trends, and expert opinions on whether you should consider subscribing. IPO Structure and Price Band The Ather Energy IPO is sized at approximately ₹2,981.06 crore. This includes a fresh issuance of shares worth ₹2,626 crore and an offer for sale (OFS) component totaling ₹354.76 crore. The company has set the price band for the IPO between ₹304 and ₹321 per share. Investors can bid for a minimum lot size of 46 shares and in multiples thereafter, making it accessible for a broad range of retail participants. The funds raised fro...
Read more

Sector Rotation Strategies in Current Market Conditions: A Deep Dive

Image
The stock market moves in cycles, influenced by factors such as economic growth, interest rates, inflation, and investor sentiment. A key strategy that professional investors use to maximize returns and manage risk is sector rotation —shifting investments between different industry sectors based on where we are in the economic cycle. In the current market environment, where interest rates remain high, inflation concerns persist, and technological advancements are reshaping industries, sector rotation strategies are more relevant than ever. Understanding Sector Rotation: A Market Cycle Approach Sector rotation is based on the idea that different industries perform better at different stages of the economic cycle. The stock market generally follows four main phases: 1. Early Expansion (Recovery Phase) Economic Environment: After a recession, central banks lower interest rates to stimulate growth. Consumer demand starts recovering, and corporate earnings improve. Win...
Read more

Hexaware Technologies IPO: A Comprehensive Review

Image
Hexaware Technologies, a well-known IT services and consulting firm, is set to make a comeback in the Indian stock market with its much-anticipated Initial Public Offering (IPO). The IPO is scheduled to open for subscription on February 12, 2025 , and will close on February 14, 2025 . This offering is expected to generate significant interest among investors. Hexaware Technologies IPO Details Issue Type: 100% Offer for Sale (OFS) by CA Magnum Holdings (an affiliate of The Carlyle Group) Issue Size: ₹8,750 crore Price Band: ₹674 - ₹708 per share Lot Size: 21 shares (and multiples thereof) Listing Date: February 19, 2025 Stock Exchanges: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) As this IPO is entirely an OFS, no fresh capital will be raised. The objective is to provide liquidity to existing shareholders and increase market visibility for the company. Company Overview Established in 1992 , Hexaware Technologies is a global player in IT...
Read more