Coal India breaches 400 MT output 31 days ahead compared to last fiscal

Coal India Limited (CIL) has breached the 400 million tonne (MTs) production mark in the quickest time ever, since the inception of the company, on 24 November of the ongoing fiscal. This represents a y-o-y growth of 17%. CIL as of same date last year produced 342 MTs.

CIL hit the record time output of 400 MTs, 31 days ahead compared to 25th December of last year. The company's accelerated production brought down the asking annual growth rate to 6.9% from 12.4% at the year's start. All the subsidiary companies of CIL sustained double digit production growth since the beginning of FY'23 compared to preceding fiscal.

"We began FY'23 requiring 78 MT jump in volume terms to touch the target of 700 MTs. As of 24 November the company has already achieved an increase of nearly 58 MTs. In the ensuing months we aim to sustain the tempo and further scale up the production and feel upbeat about achieving the target" said a senior executive of CIL.

CIL's production peaked to 2.1 MTs as of the referred date which is the highest ever recorded single day's output till November in any fiscal.

Paving the path to increased production in the remaining months of FY'23, the company's overburden removal (OBR) has been consistently logging an average of 5.4 million cubic metres (MCuM) per day during November till now. This level of OBR pace was never witnessed earlier. CIL's OBR has risen into high orbit of 5.8 MCuM on 23 November which is yet another high.

OBR is an important performance parameter that exposes the coal seam which simplifies the future extraction of coal. OBR also lends better mine geometry leading to ease of operations and improved safety.

With the monsoon season ended most of the mines have been dewatered. The festive season is also over. There will be greater availability of machines and manpower leading to better production and productivity in the coming months.

Shares of Coal India Limited was last trading in BSE at Rs. 228.30 as compared to the previous close of Rs. 230.60. The total number of shares traded during the day was 332012 in over 5513 trades.

The stock hit an intraday high of Rs. 231.40 and intraday low of 227.40. The net turnover during the day was Rs. 76051158.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 Production Output CIL