The shares of PSU company, specialzing in mining and production of Coal, and also operates Coal washeries, jumped upto 3 percent upon Board approval to implement a Singrauli Punarasthapan Charge of Rs. 300 per tonne.
Price action
With a market capitalization of Rs. 2,28,914.54 crores on Friday, the shares of Coal India Limited jumped upto 3.27 percent, making a high of Rs. 375.75 per share compared to its previous closing price of Rs. 363.85 per share. The stock is currently trading at a discount of 32 percent from the 52 week high of Rs. 544.70.
What Happened
Coal India Limited engaged in mining and production of Coal, and also operates Coal washeries has approved the implementation of a “Singrauli Punarasthapan Charge” of Rs. 300 per tonne, which will be levied uniformly across all mines of its subsidiary, Northern Coalfields Limited (NCL), starting from May 1, 2025. The additional revenue expected from this charge is approximately Rs. 3,877.50 crores.
About the company
Coal India Limited (CIL) is the largest coal producer in the world and a state-owned enterprise under the Government of India. It is engaged in the mining, production, and distribution of coal across the country and operates numerous coal mines and washeries. CIL plays a crucial role in meeting India’s energy needs, primarily supplying coal to the power, cement, and steel industries.
Manufacturing Capacity
Coal India Limited (CIL), the world’s largest coal miner, operates across 83 mining areas in eight states in India through its subsidiaries. The company oversees 322 mines, comprising 138 underground, 171 opencast, and 13 mixed mines.
CIL aims to boost its coal production to 1 billion tonnes by 2024-25, in line with national targets. For the upcoming fiscal year, the company is targeting a record output of 838 million tonnes and expects initial stockpiles of 80 million tonnes, reflecting an increase of over 15 percent compared to the previous year.
Financials
The company’s revenue declined by 1.13 percent from Rs. 38,357 crore to Rs. 37,922 crore in Q3FY24-25. Meanwhile, Net profit declined from Rs. 9,069.19 crore to Rs. 8,505.57 crore during the same period.
Written by Sridhar J
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