Coal India increases coal supply
Coal India Ltd (CIL) increased its coal supply to power utilities by 9.2% to 290.59MTs during April-November 2017. This is an absolute increase of 24.59MTs, compared to 266 MT during April-November 2016. CIL registered an increase of 8.1% in overall production, with production touching 329.3MTs.
This increase comes in line with a statement by the Coal Secretary stated that CIL would have to “increase production and productivity” in order to offset the wage hikes given to management and workers of CIL. Coal Secretary Susheel Kumar stated that this increase in wages should not be affected by this increase in wages.
CIL has given a production target of 600 MT for FY18, an annual growth of ~8.3% over FY17. The company is likely to come close to achieving this target given that the demand from power and steel industries is rising. The success of the SHAKTI scheme is likely to act as a near-term catalyst for demand growth.
Coal India Ltd is currently trading at Rs 270, down by Rs 2.25 or 0.83% from its previous closing of Rs 272.25 on the BSE. The stock touched a 52 week high of Rs 332.1 on 27-Feb-2017 and a 52 week low of Rs 234 on 11-Aug-2017. Last one week high and low of the scrip stood at Rs 282 and Rs 269.5 respectively.