On Wednesday, state-owned Coal India said the company aims to invest Rs 40,000-50,000 in capital expenditures over the next four to five years. Coal India Chairman Pramoda Grawar said capital spending of Rs 17,000 for the current fiscal year was “on track”, according to news agency PTI. He also emphasized that price revisions are “unavoidable” and may occur shortly.
“We have made a capital investment of 7,000 rupees so far, and our goal for this year is 17,000 rupees. We will invest about 40,000-50,000 rupees in the next 4-5 years. Most of the incremental capital investment Is the production and evacuation of coal. “
Regarding the discrepancy between EBITDA (interest, taxes, depreciation, and income before amortization) and increased capital investment by miners, the chairman said that mining is different from manufacturing, where increased capital spending leads to increased EBITDA. rice field. ..
“We have to make such spending to maintain production. We have made significant investments in production and evacuation since last year alone,” said Agrawar.
The world’s largest coal producer said it had “sufficient cash flow” to manage its investment, so the reduction in accounts receivable would not affect its capital investment plans. As of October 2021, coal refiners’ accounts receivable decreased from Rs 19,000 in March 2021 to Rs 12,000.
On Wednesday, November 24, Coal India shares were settled at BSE at Rs 159.10 per share, up 1.86%. Coal India opened at BSE at Rs 158.50 throughout today’s trading session, with a high during the day at Rs 161.60 and a low during the day at Rs 155.65.