Coal India’s earnings prospects rest on uptick in volume, e-auction premiums

Coal India Ltd’s production and sales numbers during February continued to disappoint, declining by 6.6% and 6.2% respectively.

Though production at SECL, the company’s largest coalfield, increased, the disappointment was led by a decline in production at most other coal fields. Volume growth has remained a key concern of the street.

Analysts attribute Coal India’s sluggish February operating performance to weak demand from the power sector.