Volumes key for Coal India after surprisingly strong Q4 performance

Higher prices aided profitability but e-auction realisations falling

The surprisingly strong March quarter performance of Coal India (CIL) — the largest coal mining company of the country — was driven by better-than-expected realisations.

Per-tonne realisation for coal supplied under the Fuel Supply Agreement (FSA; pre-determined prices typically lower than market rates), was up 4 per cent year-on-year (YoY) at Rs 1,460, while e-auction realisations surged 30 per cent YoY to Rs 2,754. Therefore, revenues grew 6 per cent YoY to Rs 28,546 crore, better than the Rs 27,283 crore indicated by Bloomberg estimates. Volume growth, however, remained at about 3 per cent YoY during Q4.

Better realisation, along with cost-control