Coal India gains after increasing coal prices

Coal India rose 4.23% to Rs 293.25 at 10:00 IST on BSE after the company's board of directors approved about 6.29% increase in coal prices over the current prices with effect from 30 May 2016.

The announcement was made on Saturday, 28 May 2016.

Meanwhile, the S&P BSE Sensex was up 86.92 points or 0.24% at 26,717.57.

On BSE, so far 1.86 lakh shares were traded in the counter as against average daily volume of 5.44 lakh shares in the past one quarter. The stock hit high of Rs 296 and low of Rs 287.90 so far during the day. The stock had hit a record high of Rs 447.25 on 5 August 2015. The stock had hit a 52-week low of Rs 272.05 on 12 April 2016. The stock had underperformed the market over the past one month till 27 May 2016, falling 3.2% compared with Sensex's 2.26% gains. The scrip had also underperformed the market in past one quarter, sliding 9.64% as against Sensex's 15.11% gains.

The large-cap company has equity capital of Rs 6316.36 crore. Face value per share is Rs 10.

Coal India's board of directors at its meeting held on 28 May 2016, approved about 6.29% increase in coal prices over the current prices with effect from 30 May 2016. This will be applicable to all subsidiaries of Coal India and NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn additional revenue of about Rs 3234 crore for the balance period of current financial year i.e. from 30 May 2016 to 31 March 2017. The board has also approved the differential price for non-regulated sector at a reduced rate of 20% over the price of regulated sector for G6 to G17 grades of coal for all subsidiaries of Coal India.

Meanwhile, Coal India's consolidated net profit rose 0.22% to Rs 4247.93 crore on 0.72% decline in total income to Rs 22898.79 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 28 May 2016.

Coal India is an organized state-owned coal mining corporate. The Government of India held 79.65% stake in Coal India (as per the shareholding pattern as on 31 March 2016).

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