Coal India share price declines 4% post production numbers, January volume details

Stock Market today: Coal India share price declined 3% in the morning trades on Monday after it had declared production numbers, January volume details on Saturday, post market hours

Provisional Production and Off-take Performance of Coal India and Subsidiary Companies for the month of January’25 and for the period April’24-Jan’25, declared by Coal India, showed that production remained slightly lower in the month of January though remains strong during financial year to date

January production declines but financial year to date remains strong

The January'2025 production for Coal India at 77.8 million tonne (mt) was 0.8% lower than 78.4 mt in January 2024

However Coal India Production during Financial year to date i.e during April 2024 to January 2025 period at 621.1 mt is still up 1.8% compared to 610.3 mt in the year ago period (April 2023- January 2024)

Sales Volume continue to grow

Coal India offtakes at 68.6mt during January 2025 remained 2.2% higher compared to 67.1mt in January 2024. Cumulative offtakes for Coal India during April 2024 to January 2025 period at 630.2 mt also remained 1.8% compared to 619.4 mt in the year ago period (April 2023- January 2024).

The strong demand from power sectors where coal India supplies its produce to thermal power producers remains strong. Also volumes to non power producers is also likely to continue growing as per analysts.

Coal India share price movement

Coal India share price opened at ₹384.40 on the BSE on Monday , slightly lower than the previous close of ₹385.35. Coal India share price nevertheless slipped lower to lows of ₹366.55 marking a decline of more than 4%

Notably the Nifty metal Index also was trading 2.5% lower on a day when benchmark Nifty 50 Index and Sensex also saw steep correction of close to 1%

Coal India Q3 Results

COAL India Q3 FY25 performance showed decent improvement after some softness in Q2Y25 (which was affected by extended monsoon). The more profitable e-auction volumes also were good with some increase in e-auction premiums supported profitability.

Analysts at Motilal Oswal Financial Securities who maintained their Buy ratings said that the company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal. Further, as per MOFSL, management is focusing on coalmine expansions, which would be funded via internal accruals, or Coal India might borrow to undertake certain strategic diversification projects, such as RE facilities and coal gasification, et al.

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(more to come)