Bharat Coking Coal Issues First-Ever Rs. 44 Crore Dividend to Coal India

In a formal ceremony, CIL chairman P. M. Prasad received the dividend from BCCL chairman and managing director Samiran Dutta. On August 1, during BCCL’s 53rd Annual General Meeting, shareholders approved the dividend payment.  Dutta credited the company’s steady growth rate of 15 percent over the past few years for its solid financial performance and strategic advancements. This milestone follows BCCL’s achievement of clearing its accumulated losses and reporting a net profit of Rs. 1,564 crore for the financial year 2023–24, with a revenue of Rs. 13,216 crore. BCCL has declared a dividend of Rs. 44.43 crore for FY24. This is the first time in its history, indicating that the company has performed well in the recent past.

BCCL target of revenue of Rs. 40000 crore in FY30:

This ambitious revenue target of Rs. 40,000 crore reflects BCCL’s commitment to expanding its operations and exploring new business opportunities. By focusing on increasing coal sales and diversifying its portfolio, the company aims to not only boost its financial performance but also contribute to the growth of the Indian economy. With a clear vision and strategic planning, BCCL is poised to achieve its goal of generating Rs. 40,000 crore in revenue by FY2030, solidifying its position as a key player in the coal industry. The company plans to increase its production from approximately 41.1 million metric tons of coal in the last financial year to about 100 million metric tons by FY30. This is a significant step that BCCL is taking under the leadership of Samiran Dutta.

Our company produced 41.1 million metric tons of raw coal in FY24. In the current financial year, our target is to produce around 45 million metric tons. By 2029–30, we aim to produce 100 million metric tons. The company is working on the development of large coal blocks, stated Bharat Coking Coal Limited chairman and managing director Samiran Dutta during a press conference in Kolkata on Sunday. The company’s net sales stood at Rs. 13,216.17 crore in the last financial year. “By FY203, we are aiming to achieve a revenue of approximately Rs. 40,000 crore,” Samiran Dutta said, adding that the company plans to invest around Rs. 3,000 crore by FY30. The company produced around 1.5 million metric tons of washed coal in FY24. It is looking to increase the washed coal production to 2.5 million metric tons in FY25. Coking coal accounts for the majority of the company’s coal production.

The company is diversifying into coal bed methane (CBM) and solar power generation. Jharia CBM Block-1 is under development, with an estimated gas reserve of 26 billion cubic meters to be extracted in the next 25 years. Around 45 MW of ground-mounted solar projects are also under installation.

BCCL has also embarked on an asset monetization strategy and is looking to invite bids for private sector participation in the development of coal washeries. Four coal washeries are under the process of monetization, with a total capacity of around 7.1 million metric tons. Private players will source coal from us, and we will offer land on lease. Samiran Dutta said that the idea is to increase the production of washed coal by leveraging private sector efficiency.

Stock price of BCCL:

Bharat Coking Coal (BCCL) stock is down by 4% to Rs. 504.25 per share after aiming for Rs. 40,000 crore in revenue for FY30.

Stock price of coal in India: 

Coal India’s stock price is currently at Rs. 504.30 per share, which is almost 4% down in the intraday segment.

Conclusion:

Samiran Dutta is advancing to the next level by taking the BCCL, which will benefit both BCCL and its parent company, Coal India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.