Bhavesh Chauhan, metal analyst at Angel Broking expects Coal India to ramp up production by 5.5% growth in FY13.
He said that over the last five years Coal India has struggled to raise production and its five year CAGR has been close to 5%. However, exceeding 5% for the next couple of years would be difficult, given that there are no new mines having full-fledged clearances.
Below is the edited transcript of the interview. Also watch the accompanying video.
Q: Do you fear that there maybe a shortfall in the company being able to supply what they promise? Do have any indication of what the penalty might be and what the impact will be on the P&L?