Coal India gains on breaching 400 MT output 31 days ahead compared to last fiscal

Coal India (CIL) rose 1.27% to Rs 231.20 after the company said it breached the 400 million tonne (MTs) production mark on 24 November of the ongoing fiscal, representing a y-o-y growth of 17%.

CIL hit the record time output of 400 MTs, 31 days ahead compared to 25th December of last year. The company's accelerated production brought down the asking annual growth rate to 6.9% from 12.4% at the year's start. All the subsidiary companies of CIL sustained double digit production growth since the beginning of FY'23 compared to preceding fiscal.

CIL's production peaked to 2.1 MTs as of the referred date, which is the highest ever recorded single day's output till November in any fiscal.

"We began FY'23 requiring 78 MT jump in volume terms to touch the target of 700 MTs. As of 24 November the company has already achieved an increase of nearly 58 MTs. In the ensuing months we aim to sustain the tempo and further scale up the production and feel upbeat about achieving the target," said a senior executive of CIL.

"With the monsoon season ended most of the mines have been dewatered. The festive season is also over. There will be greater availability of machines and manpower leading to better production and productivity in the coming months," CIL said in a statement.

CIL is a coal mining company engaged in the production and sale of coal. As of 30 September 2022, the Government of India held 66.13% stake in the company.

CIL's consolidated net profit zoomed to Rs 6,043.99 crore in Q2 FY23 from Rs 2,932.73 crore in Q2 FY22. Net sales during the quarter increased by 29% YoY to Rs 27,538.59 crore.

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