The leading coal-producing company’s shares fell 5% after its Chairman stated that it is likely to miss its production target of 780 MT by 10 MT in FY24.
With a market capitalization of Rs 2.84 lakh crore, the share of Coal India Ltd closed at Rs 461.30 per share, decreasing around 3.87 percent as compared to the previous closing price of Rs 479.85 apiece.
According to CNBC, the company may miss its production target for the current fiscal year by 10 MT. Furthermore, Coal India Ltd’s output climbed by 9.1% in January to 78.4 million tonnes (MT), compared to 71.9 MT the previous year during the same time. Coal India’s overall output for the current fiscal year was 610.3 MT, representing 78.2% of its full-year production target of 780 MT.
Moreover, production is slow in the first half of the financial year due to the monsoon months. Even in the fiscal year 2023, Coal India’s output was 42% of the yearly objective in the first half of the year before surpassing the 700 MT production target a day before the conclusion of the year.
According to the trading firm Nuvama, Coal India Ltd’s output estimate is 764 MT, which is already lower than the company’s previous prediction.
According to PM Prasad, Chairman of Coal India, the company’s e-auction premium has dropped from 117% in December 2023 quarter to 45% in the current quarter. In the December quarter, e-auctions contributed ₹5,233 crore to the company’s total revenue of ₹33,000 crore, accounting for 15%.
Coal India Limited manufactures coal and coal-based goods. The company’s product offerings include coking coal, semi-coking coal, non-coking coal, hard coal, washed and beneficiated coal, coal fines, heavy oil, and coke. It runs open-cast, underground, and mixed mines.
Written by:- Abhishek Singh
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