Shares of government-owned Coal India fell 4 per cent intraday after Power Secretary Subhash Chandra Garg said there is a need to award five coal blocks of 100 million tonne capacity to big private companies.
Shares of government-owned Coal India fell 4 per cent intraday after Power Secretary Subhash Chandra Garg said there is a need to award five coal blocks of 100 million tonne capacity to big private companies. At 1:28 PM, Coal India shares were trading at Rs 181.15 per share, 7.60 points lower than the last close. The shares of Coal India had opened marginally higher in the morning.
As coal accounts for the major chunk of power generation in the country, the power secretary said there is a need to produce 1,000 million tonnes of coal on an annual basis when only 600 million tonnes of coal is produced in the country. While the government has passed the commercial mining law but that needs to be implemented, added Garg.
Coal India reported a 22 per cent rise in its Q1FY20 profits at Rs 4,629.87 crores as against the net profit of Rs 3,786.40 crore during the same period of last year. The company’s revenue edged up 3.6 per cent to Rs 24,939 crore as compared with Rs 24,070 crore a year ago. Its EBITDA for the June quarter stood at Rs 6,611 crore, up 16.9 per cent from Rs 5,654 crore in the previous year. The mining company posted production of 136.94 million tonnes in the first quarter of FY20 ended June 30 as compared with 136.85 million tonnes last year.
The company’s total expenses were at Rs 19,077.44 crore during the quarter under review as compared with Rs 19,272.43 crore in the same quarter of previous fiscal. On a standalone basis, Coal India reported a rise in its April-June profits to Rs 83.23 crore from Rs 68.21 crore in the year-ago period. Its standalone income in the April-June quarter stood at Rs 282.77 crore as against Rs 282.65 crore in the year-ago period.