Following the announcement of production figures and January volume information on Saturday after market hours, the price of Coal India’s stock fell 4% in Monday morning trading.
Following its announcement of production figures and January volume information on Saturday, post-market hours saw a 3% drop in the price of Coal India’s shares in Monday morning trading.
According to Coal India’s Provisional Output and Off-Take Performance for January 25 and April 24–January 25, output was somewhat lower in January. Still, it has remained robust throughout the financial year thus far.
Coal India’s January 2025 output of 77.8 million tons (mt) was 0.8% less than its January 2024 production of 78.4 mt.
Nonetheless, India’s coal production for the current fiscal year, which runs from April 2024 to January 2025, at 621.1 mt, is still 1.8% more than the 610.3 mt produced during the same time last year (April 2023–January 2024).
Offtakes of coal from India in January 2025 were 68.6 million tons, which was 2.2% more than 67.1 million tons in January 2024. Coal India’s cumulative offtakes from April 2024 to January 2025 were 630.2 mt, 1.8% less than the 619.4 mt offtakes during the same period last year (April 2023–January 2024).
There is still a high demand from the power industries, where coal from India is used to make thermal electricity. Analysts predict that volumes to non-power producers will also continue to increase.
Monday’s opening price of ₹384.40 for Coal India shares on the BSE was marginally below the previous close of ₹385.35. However, the share price of Coal India fell more than 4%, reaching lows of ₹366.55.
Notably, on a day when the benchmark Nifty 50 Index and Sensex also suffered sharp corrections of about 1%, the Nifty Metal Index was trading 2.5% lower.
Coal India Q3 Results:
Following some weakness in Q2Y25 (caused by the prolonged monsoon), COAL India’s Q3 FY25 performance showed a respectable recovery. Profitability was supported by some growth in e-auction premiums, and the more lucrative e-auction volumes were also favorable.
According to Motilal Oswal Financial Securities analysts, the company’s focus on expanding coal-washer capacity will increase its market share in domestic coking/non-coking coal, who kept their buy recommendations. According to MOFSL, management is concentrating on coalmine expansions, financed by internal accruals or borrowing money to carry out specific strategic diversification projects like coal gasification and RE facilities.
