Coal India falls despite record supplies, rising production

Shares of Coal India were trading in the red, falling around two percent in January 3 despite the state-owned company supplying an all-time high volume of 98 million tonnes (mts) to non-regulated sector (NRS) consumers till December.

Compared to the the year-ago period, the supply is up 23 mts or 31 percent more than over 75 mts .

At of 12.15 pm, Coal India was trading at Rs 388.95 on the National Stock Exchange, down 0.98 percent from the previous session.

The coal production in December increased by 8.2 percent YoY to 71.9 million metric tons and in the April–December period by 11 percent to 531.9 million metric tons compared to the year-ago period.

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The offtake rose by 6.1 percent year over year to 66.6 million metric tons during the month of December 2023, while the offtake in the nine-month period ending December 2023 grew by 8.7 percent to 552 million metric tons from the year-ago period.

“Coal stock at CIL’s pitheads (was) at around 50 MTs as of December. This was 56 percent higher than the inventory of 32 MTs during the same period last year providing a comfortable buffer against any sudden demand surge,” Coal India said.

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