Coal India shares extend losses for 4th straight day after August production declines 11.9% YoY; check details

Extending the losses for the fourth straight day, shares of the state-owned coal producer dropped as much as 3.66% to an intraday low of ₹500.55 apiece on the NSE. The stock, however, recovered some losses to close at ₹505 apiece, down 2.81% on the NSE.

In the last 4 sessions since August 30, the stock has declined 4.6%.

In a filing on September 2, Coal India informed the exchanges that its coal production declined 11.9% to 46.1 million tonnes (MT) in August 2024, compared to 52.3 MT in the same month of the preceding year. The public sector undertaking’s coal offtake in August 2024 stood at 52.1 MT, down 11.8% against 59.1 million metric tonnes during the corresponding month of the previous year.

In August, five of Coal India’s subsidiaries, Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Northern Coalfields (NCL), Western Coalfields (WCL), and South Eastern Coalfields (SECL), also posted a year-on-year decline in coal production ranging from 8% to 28%.

Earlier in February, Coal India Chairman and Managing Director (CMD) PM Prasad projected that the state-owned company would produce 838 MT of coal for FY25. The coal production recorded during August makes up 34% of the full-year target.

On the other hand, Coal India’s coal production for the April to August period of 2024 increased by 3.2% to 290.4 MT compared to 281.5 MT in the same period of the previous year. The state-owned company’s coal offtake for the April to August period also improved 1.4% YoY to 310 MT compared to 305.6 MT in the corresponding period a year ago.