Coal India's FY22 despatch as of Feb 16 exceeds total supplies logged in FY 21

With almost a month and a half remaining before FY 22 draws to an end Coal India Limited (CIL), as of February 16 has already raced ahead of the total coal despatch of FY 21.

CIL has supplied 575 MTs of coal during this period bettering the annual despatch of 574.5 MTs in financial year 2021.

Till February 16 0f the current fiscal, CIL's despatch to power plants of the country was up at 468.4 MTs compared to 381 MTs of corresponding period last year, posting 23% growth.

The 9.4% growth in power generation till December FY 22 was the highest in a decade on the back of a strong post covid economic revival. Whereas, coal imports are down to a nine year low due to a sharp increase in international coal prices. This put the onus on CIL to step in with increased supplies to ensure uninterrupted power generation which it did.

Amid wild fluctuations the total coal-based power generation went up sharply to 11.2% ln FY 22 till January, against comparable period last year, after a decline during previous two years. To handle such volatility in demand is difficult for a mining company but CIL managed to do so with increased volume supplies.

CIL has ensured higher availability of coal from its end at a time when the domestic coal-based generation has spiked up by 17% till January FY22.

As of February 3, nearly two months before the current fiscal's closing, CIL despatched 446.5 MTs of coal to the power sector exceeding the total quantity that it supplied to utilities during entire FY 21, which was 445 MTs.

CIL aims to scale up its supplies to the regulated power sector to 548 MTs ending 2021-22 as per the projection of Central Electricity Authority. This would mean a whopping 103 MT volume jump compared to the power sector's despatch of 445 MTs in FY'21.

CIL's average despatch to non-power sector is 3.32 lakh tonnes per day so far in the current fiscal which is the normal average. With sufficient coal availability and production looking up, meeting the average-despatch of the non-regulated sector will not be an issue.

CIL's current coal production is at 2.3 MTs/day and expected to scale up to 2.6 MTs/day and above in the high yielding month of March.

Shares of Coal India Limited was last trading in BSE at Rs. 163.05 as compared to the previous close of Rs. 163.80. The total number of shares traded during the day was 285144 in over 2849 trades.

The stock hit an intraday high of Rs. 165.55 and intraday low of 162.70. The net turnover during the day was Rs. 46769366.00.

Source : Equity Bulls

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