Coal India E-Auction Revenue Falls 7% In Q1 Despite Higher Sales
E-auction volume and realisation price are key drivers of profitability for the miner.
(Source: Bence Balla-Schottner/ Unsplash)
Coal India Ltd.'s average revenue from e-auctions fell 7% to Rs 5,589 crore in the first quarter of fiscal 2025. That compares to Rs 6,023 crore in the same period last year. The fall was attributed to decreased auction prices.
Revenue declined despite a nearly 37% rise in e-auction volumes to 23.18 million tonnes in the first quarter, compared to 16.10 million tonnes in the same quarter last year.
E-auction volume and realisation price are key drivers of profitability for the miner.
The company commanded an average e-auction rate of Rs 2,411 per tonne, a sharp decline of about 35% from April-June 2023, when it was Rs 3,740 per tonne.
During the April-June period of 2023, Coal India benefitted from high electricity demand and strong global prices for coal, which led to better e-auction prices. This was due to the power sector's demand exceeding supply, PTI reported citing an analyst.
The average realisation also slipped on Fuel Supply Agreement coal to Rs 1,524 per tonne during the quarter, against Rs 1,536 per tonne in the same period last year.
Majority of the FSA coal is supplied to the power sector at an affordable price under long-term fuel supply agreements. Over 85% of the coal goes through the FSA sales route.
Meanwhile, Coal India reported a 4% rise in consolidated net profit to Rs 10,943 crore for the April-June quarter, against Rs 10,498 crore in the year-ago period.
Revenue from operations expanded marginally to Rs 36,465 crore during the quarter, as against Rs 35,983 crore in the corresponding period last year.
(With inputs from PTI).
