Coal India’s tepid Q3 may not ignite much enthusiasm in the stock

Coal India Ltd may not be firing up anytime soon as volume off-take in the third quarter has been patchy. Coal demand for thermal power slowed a tad. That has certainly not been helping its stock, which is meandering near its 52-week lows, and remained flat trade on Tuesday.

While the company managed to dispatch about 142 million tons of coal, it was still lower by about 8% from the year-ago period. Although free sale coal price realisations have been 6% higher year-on-year, revenue growth took a hit due to the lower off-take. Revenues dipped 7.4% y-o-y, which is a sharp contraction.