Updated March 4th, 2024 at 18:26 IST

Coal CPSEs witnessed exponential growth in FY23: Govt

The market capitalisation rose sharply to Rs 2,98,121 crore, witnessing growth of 256.87 per cent since 2021.

Reported by: Business Desk
कोयला उत्पादन | Image:PTI
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Coal CPSE’s growth: Coal Public Sector Enterprises (CPSEs) have emerged as key players in India's economic growth, showcasing resilience. Their contributions to the economy, as reflected in market capitalisation, capital expenditure (CAPEX), and profitability, shows how the coal CPSEs are moving forward. 

Market capitalisation soars

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The coal giants, namely Coal India Limited (CIL) and NLC India Limited (NLCIL), have experienced a stellar surge in their core operations, igniting investor confidence and propelling their stocks to all-time high prices. The coal PSU stocks have transformed into multi-baggers over the last year, delivering substantial returns in both dividend yield and capital appreciation. The market capitalisation journey over the years speaks volumes. The market capitalisation of Coal India was at Rs 81,483.45 crore on April 1, 2021. The market capitalisation rose sharply to Rs 2,98,121 crore, witnessing growth of 256.87 per cent since 2021. 

Similarly, NLC India’s market cap was at Rs 7,064.78 crore on April 1, 2021. The market cap rose to Rs 35,172 crore witnessing growth of 397.85 per cent. 

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CAPEX Fuels Economic Growth

Coal CPSEs have not just been contributors but fulcrums of economic activities, steering the way through significant Capital Expenditure (CAPEX). Over the past three years, these entities have provided a substantial boost to the country's economic ecosystem through noteworthy CAPEX contributions. In FY21, the capex by coal CPSEs stood at Rs 17,474.91 crore, the capex rose to Rs 19,656 crore in FY22. The capex in FY23 stood at Rs 23,400.22 crore witnessing a growth of 19.05 per cent.

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Published March 4th, 2024 at 18:26 IST