Beset by production challenges and lower price realizations in recent times, Coal India Ltd’s share price fell to an all-time low of ₹214 on 11 February on the National Stock Exchange.
For all the pessimism, though, Coal India surprised the Street with better-than-expected volume growth and higher realizations. This was topped off with good discipline in operating expenditure, resulting in better operating margin.
The company achieved a substantial 13% increase in FSA realizations to ₹1,334 a tonne. (FSA is the fuel-supply agreement the company has inked with power producers.)
