Coal news and updates

Coal India Ltd. suffered a 14.7 per cent dip in its net profit to Rs.3065.3 crore in the first quarter of this fiscal, despite a higher coal off-take this year. Net sales were lower 6 per cent at Rs.17,796 crore against Rs.18,955.8 crore in the year-earlier period.

 

The earnings were hit by lower per-tonne price realisation, mainly from e-auction sales, which dropped from Rs.2,184 per tonne in the first quarter of 2015-16 to Rs.1,570 per tonne between April and June 2016.

 

The quantity sold through e-auction was higher at 20.5 million tonnes against 16 million tonnes a year ago. Average realisation from raw coal was Rs.1,291 per tonne in the quarter, against Rs.1,429 crore a year earlier.

 

“There was a negative price sentiment in the market,” CIL chairman Sutirtha Bhattacharya told The Hindu.

 

The year had begun with a 93-day coal stock at the CIL and the power plants. “This slowed down the market,” he said.

 

CIL’s production increased by 3.6 per cent during the period under review to touch 125.7 million tonnes, while off-take increased by 2.9 per cent to 133.2 million tonnes.

 

Earnings were also affected by a Rs.254 crore dip in CIL’s bank earnings where yields had dropped.

 

“Lower deposits and lower yields led to a decline in earnings on this front,” Mr. Bhattacharyya said.

Source:The Hindu