India’s coal production by CIL arms declines in April-December period, fossil fuel output down 9.4%

Coal India subsidiaries--Bharat Coking Coal Ltd (BCCL) and South Eastern Coalfields Ltd (SECL) registered a decline in coal production between April and December of the current fiscal year (FY25). The world's largest state-owned coal producer said in a regulatory filing to the stock exchanges on Wednesday, January 1, that while BCCL's coal production dropped by 2.6 per cent, SECL's fossil fuel output declined by 9.4 per cent.

However, other subsidiaries of the MahaRatna public-sector undertaking (PSU), Northern Coalfields Ltd, Eastern Coalfield Ltd (ECL), Central Coalfields Ltd (CCL) and Western Coalfields registered a growth in production between April-December. Coal India's production in the period under review was 543.4 million tonnes (MT), compared to 531.9 MT in the year-ago period.

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In December, the state-run miner produced 72.4 MT of coal, compared to 71.9 MT in the corresponding month of the previous fiscal year. Coal India accounts for over 80 per cent of domestic coal output. The PSU has set a target of producing 838 MT of coal in FY25. It produced 773.6 million tonnes of coal in 2023-24, but fell short of its production target of 780 MT for the fiscal.

Coal India Q2 Results

Coal India announced its July-September quarter results for fiscal 2024-25 (Q2FY25) in October, reporting a decline of 22 per cent in consolidated net profit to ₹6,289.10 crore dragged by lower sales of coal and allied products, compared to ₹8,048.6 crore in the corresponding period last year.

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The state-run miner's revenue from operations in the second quarter of the current fiscal fell 6.4 per cent to ₹30,672.9 crore, compared to ₹32,776 crore in the year-ago period. The government-owned miner accounts for 80 per cent of the country's domestic coal production.

Coal India has posted a 10 per cent rise in its coal output at 773.6 million tonnes in the 2023-24 fiscal year. However, the output fell short of its 780 MT production target for the 2023-24 financial year. The PSU produced 703.2 MT of coal during the preceding 2022-23 fiscal. On Wednesday, shares of Coal India settled 0.68 per cent higher at ₹386.50 apiece on the BSE.

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