CIL shares fall over 3% on disappointing earnings

Coal India stock fell over 3 per cent today, following a decline of 11.4 per cent in its net profit for the quarter ended December 31, 2013.
The state-run firm's scrip ended the day at Rs 260.75, down 3.39 per cent on the BSE. During the day, the stock had lost 3.66 per cent at Rs 260.
On the NSE, it settled 3.30 per cent down at Rs 261.
"Lower e-auction price and higher costs dented Coal India's profits for Q3. If one observes it technically, the volume was weak in today's fall and thus it shows lower participation," said Milan Bavishi, Head Research, Inventure Growth and Securities.

CIL yesterday reported a decline of 11.4 per cent in consolidated net profit to Rs 3,894.09 crore for the third quarter (October-December, 2013-14) on lower e-auction realisation and quantity.
The PSU had clocked a profit of Rs 4,395.11 crore in the corresponding quarter of the previous financial year.
Net sales during the October-December quarter declined 2.3 per cent to Rs 16,928.13 crore from Rs 17,325.04 crore in the year-ago period.
"Profit is lower due to low sales, increase in general cost, inflationary pressure and low realisation from e-auctions during the quarter," Coal India Chairman S Narsing Rao said yesterday in Kolkata.