Coal India shares rise over 5% after hike in non-coking fuel price
Coal India shares rise 7.69% to Rs310 after its board approved a hike in non-coking coal prices for both power and non-power consumers with immediate effect
Kolkata: State-run miner Coal India Ltd (CIL) on Tuesday said its board has approved a hike in non-coking coal prices for both power and non-power consumers with immediate effect.
People familiar with the matter in Coal India indicated that the average price hike could be around 10%. Due to this revision, the world’s largest coal miner will earn an incremental revenue of Rs1,956 crore for the remaining period of the 2017-18 fiscal year, while total revenue will be Rs6,421 crore, the company said in a regulatory filing.
Coal India shares closed 5.63% higher at Rs304.05 on BSE, while the Sensex ended 0.26% higher at 34,443.19 points. In intraday trade, the stock rose as much as 7.69% to Rs310.
The price hike will be applicable to “all subsidiaries of Coal India, including NEC for regulated and non-regulated sectors”, the filing said.
The miner was compelled to revise prices in the wake of rising costs which was a drag on its profitability for the last few quarters. CIL had last revised price for the fossil fuel in May 2016 by 6.3% on an average that helped the miner to collect additional revenue of Rs3,234 crore in 2016-17.
Coal India slapped a levy of Rs50 per tonne as coal evacuation charges in early December which is set to earn the public sector miner Rs2,500 crore every year. In the remaining part of 2017-18, additional revenue from evacuation levy will be Rs800 crore.
The recent wage revision had pushed up its annual employees cost by additional Rs5,600 crore. Meanwhile, Coal India also said sales bills will be raised on GCV (kcal/Kg) basis with effect from 1 April 2018 and the present mode of raising bill would continue till then.
- RIL, BP spend over ₹7,000 crore to prolong output from gas fields in KG basin
- India reviews draft e-commerce policy after criticism
- Cosmos Bank’s server hacked, ₹ 94 crore siphoned off in 2 days
- NIO seeks to raise $1.8 billion in biggest US listing by China automaker
- Head office salary costs to attract 18% GST for services to offices in other states
Editor's Picks »
- BofA-ML survey: Short EM equity second most crowded trade
- GST-led shift from informal to formal sector happening, but at a snail’s pace
- Uncertain earnings for agricultural input firms despite bountiful rains
- PVR pays a premium for south
- Tata Steel’s Q1 supports India push but investors enquire at what cost