Coal India jumps after announcing rationalization of coal prices

Coal India surged 5.84% to Rs 304.65 at 10:25 IST on BSE after the company's board at its meeting held on 8 January 2018, approved revision of non-coking coal prices with effect from 9 January 2018.

The announcement was made after market hours yesterday, 8 January 2018.

Meanwhile, the S&P BSE Sensex was up 56.21 points, or 0.16% to 34,409.

On the BSE, 9.15 lakh shares were traded in the counter so far, compared with average daily volumes of 3.83 lakh shares in the past one quarter. The stock had hit a high of Rs 310 and a low of Rs 297 so far during the day. The stock had hit a 52-week high of Rs 332.10 on 27 February 2017. The stock had hit a record low of Rs 234 on 11 August 2017.

The large-cap company has equity capital of Rs 6207.41 crore. Face value per share is Rs 10.

Coal India said that the company's board at its meeting held on 8 January 2018, approved revision of non-coking coal prices with effect from 9 January 2018. This will be applicable to all subsidiaries of Coal India including NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn incremental revenue of about Rs 1956 crore for the balance period of FY 2018, the company said. The projected annual incremental revenue would be Rs 6241 crore, it added.

All add-ons viz for non-regulated sector, WCL, Rajmahal etc would be as per the extant practice. Coal Sales bills will be raised on GCV (Kcal/Kg) basis with effect from 1 April 2018 or earlier once the requisite system is ready. Till then, the present mode of raising bill would continue, Coal India said.

On a consolidated basis, Coal India's net profit fell 39.8% to Rs 368.86 crore on 11.9% growth in net sales to Rs 17478.52 crore in Q2 September 2017 over Q2 September 2016.

Coal India is an organized state owned coal mining corporate and is the single largest coal producer in the world.

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