17-year production high fires up Coal India, stock gains 3%

Coal India's stock has given a return of 18 percent in the last one year, while it has risen by as much as 59 percent in the last three.

Shares of Coal India Ltd ended more than 3 percent higher on April 3 after data showed that the company's production and offtake increased in March.

In March, production by Coal India and its subsidiaries rose by 4 percent on year, while in the financial year 2022-23, output grew by 12.9 percent to 703.2 million tonnes.

The company said it breached its annual production target of 700 million tonnes, the first time it surpassed its goal since the fiscal year that ended in March 2006.

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Coal offtake also rose 3.4 percent in March, and 5 percent during the financial year 2023.  Offtake is the amount of coal supplied from pitheads.

The stock ended at Rs 220.30, up 3.1 percent from the previous close on NSE. It touched an intraday high of Rs 220.85.

The stock has given a return of almost 18 percent in the last year and gained 59 percent in the last three.

The miner, which accounts for 80 percent of India's annual coal output, is targeting production of 780 million tonnes in the new fiscal to fire up its power utilities, which are expected to burn about 8 percent more coal in the year.

The miner's net sales were at Rs 695.31 crore in December 2022, up 132.79 percent from Rs. 298.69 crore in the corresponding period of 2021. Quarterly net profit was at Rs 8,809.07 crore in December 2022, up 56.06 percent from Rs. 5,644.83 crore in December 2021.

Coal India's EBITDA stood at Rs 8,895.20 crore in December 2022, 56.21 percent higher than in 2021.

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