Coal India Ltd on Wednesday mentioned the corporate is aiming at investing ₹40,000-50,000 crore as capital expenditure within the subsequent 4-5 years.
The ₹17,000-crore capex (capital expenditure) for the present fiscal is “on observe”, CIL chairman Pramod Agrawal informed buyers. He additionally acknowledged that value revision is “inevitable” and this may increasingly occur quickly.
“Now we have spent ₹7,000 crore capex to date and our ₹17,000-crore goal for the present fiscal is on observe. We’ll make investments round ₹40,000-50,000 crore within the subsequent 4-5 years,” he mentioned.
Many of the incremental capex will go into coal manufacturing and evacuation, he mentioned.
Requested a few mismatch between EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortisation) and the elevated capex of the miner, he mentioned, “Our business (mining) is just not like all manufacturing entity by which a rise in capital bills will translate into greater EBITDA. Now we have to hold out such expenditure to keep up manufacturing. Since final 12 months solely, we’ve got invested closely in manufacturing and evacuation.”
The Maharatna firm mentioned the capital expenditure plan is not going to be affected attributable to a fall in receivables because it has “sufficient money circulate” to handle the investments.
As of October, the receivables of the coal behemoth had been at ₹12,000 crore, down from ₹19,000 crore in March 2021.
This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
Supply: Live Mint