Shares of Coal India surged today by around 5% as august output rises 13%

In August 2023, Coal India Limited (CIL) demonstrated a remarkable performance in both coal production and supply. The company produced a substantial 52.3 million tonnes (MTs) of coal, marking a robust 13.2% increase compared to August 2022, and reflecting a steady growth trajectory. This growth trend was consistent with CIL’s annual target of 11% growth, with production reaching 281.5 MTs until August FY 2024, representing an impressive 11.1% year-on-year increase. This five-month expansion of 28.2 MTs compared to the same period in the previous fiscal year (253.3 MTs) underscores the company’s commitment to meeting rising demand. 

Furthermore, CIL’s supply chain exhibited substantial growth, with total coal supplies reaching 59 MTs in August 2023, demonstrating a robust double-digit increase of 15.3% compared to the same month in the previous fiscal year. The company supplied an additional 8 MTs in a single month. Over the period from April to August 2023, total coal off-take grew by 8%, totalling 305.5 MTs, signifying a gain of 22.4 MTs compared to the same period the previous year. 

Lastly, CIL’s coal inventory at pitheads stood at a comfortable 45.3 MTs as of August 31, representing a substantial 46% increase compared to the same date the previous year. This significant inventory ensures the company’s readiness to meet any sudden surges in demand from the power sector, enhancing its reliability as a crucial supplier in the energy sector. Overall, these statistics indicate CIL’s strong performance, growth trajectory, and its pivotal role in fuelling various sectors of the economy, particularly in power generation and industrial production. 

In last trading session shares of company were closed at Rs 236.85. Today the script was opened at Rs 238.05 and it was closed around Rs 247.85, up by 4.64%. Company has market capitalization of around Rs 1,52,700 crore.  

Coal India Ltd is mainly engaged in mining and production of Coal and also operates Coal washeries. The major consumers of the company are power and steel sectors. Consumers from other sectors include cement, fertilizers, etc. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.