Coal India shares gain 5% as production grows 13% in August

Shares of Coal India Ltd gained 5 per cent in Monday’s trade, continuing its winning streak for the third consecutive session, after the company reported strong growth in production in the month of August.  

Coal India reported a significant 13.2 per cent growth in its output in August at 52.3 million tonnes (MT), compared to 46.2 MT in the same month a year ago. Supplies also witnessed 15.3 per cent increase year-on-year, rising to 59 MT in August 2023 from 51.2 MT during the same month last year.

In the current financial year (FY 2023-24) so far, Coal India has achieved a total production of 281.5 MT, marking an 11 per cent growth when compared to the corresponding period a year ago, the state-owned company said in a filing to the stock exchanges. In the April-August period, the total coal off-take increased 8 per cent to 305.5 MT.

In its recent financial report, Coal India announced a 10 per cent year-on-year decline in net profit for June quarter (Q1FY24) at Rs 7,941 crore compared to Rs 8,834 crore in the same quarter in the previous year. However, net sales for the company showed a slight increase, growing to Rs 33,072.6 crore during the quarter, up from Rs 32,497.9 crore in Q1FY23.

Coal India Share price

 Shares of Coal India were trading 4.56 per cent higher at Rs 247.65 apiece on BSE on 2:15 PM.

The stock had experienced a surge of over 8 per cent during the previous week, further underlining the growing investor confidence in the company's performance and prospects. The stock has gained 10 per cent so far this year.