After mostly subdued FY18 output, FY19 could be better for Coal India

Rising volumes and higher realisation should boost earnings on the low base of FY18, feel analysts

The 9.4 per cent production growth at Coal India for the month of March is encouraging, after the subdued output in much of 2017-18. It was helped by higher demand from thermal power plants, which had seen stocks fall to 10 days.

Rising electricity demand with the early onset of summer and the coming peak season, coupled with subdued production of hydropower due to low reservoir levels, should ensure the demand for coal remains healthy. Similarly, the firm realisation will help offset cost pressure and sustain profitability.

In sum, an improved outlook for the government-owned behemoth in FY19. Among the key monitorables,