Volume disappointment and profit concerns remain for Coal India even though the company continues to see regular improvement in performance post easing of lockdown.
Sales volume though increased 9.1% year-on-year to 154 million tonnes (MT) in the December quarter, it came on a low base of last year. The company’s sales volumes for 10 months at 453.3 MT rose just 4.4% year-on-year.
For coal supplied under fuel supply agreement (FSA), volumes fell 4% YoY to 123 MT during Q3. This was lower than analyst expectations. Analysts at Motilal Oswal Financial Services (MOFS) had estimated FSA volumes at 133 MT. FSA realization too declined 4% to ₹1,354/tonne against MOFL expectations of ₹1,401/tonne
