Coal India registers 6.5% increase in FY24 capex at ₹19,840 crore to hit all-time high

Coal India (CIL) has notified the stock exchanges its capital expenditure has risen by 6.5% to ₹19,840 crore for the fiscal year 2024, hitting the highest level till date.

Comparatively, the capex stood at ₹18,619 crore for the preceding fiscal year, it said. “CIL achieved 120% target satisfaction over the year’s capex target of ₹16,500 crore,” it said adding that for the fourth fiscal, CIL’s capex breached the budgeted target.

Shares of CIL were trading 0.24% higher on Tuesday afternoon.

With the company focusing on strengthening coal transportation and handling infrastructure in its mining areas, capex under this head was highest among others at ₹6,070 crores, 30.6% of the year’s capex spend, it said. CIL is aiming to have adequate infra in place to evacuate increased quantities of coal produced in future.

According to the firm, capex for land stood at ₹5,135 crore in FY24, posting a jump of 52.5% on a year-over-year basis. Procurement of heavy earth moving machinery made up the third highest head with ₹3,078 crore during the fiscal achieving the target satisfaction of 156.5%.

The remaining capex amounting to ₹5,557 crore was spread among other heads which include solar projects, joint ventures, washeries, other plant and machinery, mine development activities including safety, environment, exploration and prospecting and office equipment etc, the company said.

Earlier this month, CIL had said it registered a 10% growth in its production at 773.6 million tonnes (MT) of coal in FY24 over a high base of 703.2 MTs in FY23. This is the first instance that the company recorded double digit growth in two successive years since its inception, it had stated. In the previous two financial years CIL increased its production by 151 MT.

Shares of CIL have gained over 18% since the beginning of the year. The stock has risen over 97% in the last one year.