Coal India Ltd. recorded its best January production in at least six years as output across its key subsidiaries rose.
The world’s largest miner of the fossil fuel saw its production rise 6.7% over the same month a year ago to 64.5 million tonnes in January, according to a company statement. That’s also the first time since March 2021 its output surpassed sales.
Mahanadi Coalfields Ltd. and Northern Coalfields, contributing nearly 26% and 19%, respectively, to Coal India’s output, saw production rise 19.3% and 16.2% year-on-year in January.
That offset the 4.5% and 20.1% decline in output for South Eastern Coalfields Ltd. and Eastern Coalfields Ltd. Smaller subsidiaries such as Bharat Coking Coal Ltd., too, witnessed a recovery.
Edelweiss Securities expects cash generation at Coal India in Q4 FY22 to improve led by higher offtake, better e-auction premium and working capital unlocking. Also, e-auction volumes after falling in October 2021 has been improving steadily, particularly to the non-regulated sector, the brokerage said in a note.
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