Coal India’s Steady Output: December Sees Marginal Growth While FY25 Targets Remain on Track

Coal India Limited reported a marginal rise in production for December 2024, reaching 72.4 million tonnes (MT), reflecting a 0.7% year-on-year growth. Despite this modest increase, the company remains well on track to achieve its ambitious production target for the financial year 2025. Notably, South East Coalfields and Bharat Coking Coal Ltd. were exceptions, as most other subsidiaries demonstrated year-on-year production growth.

Year-to-Date Performance: Two-thirds of Target Achieved

In the first nine months of FY24, Coal India produced 543.4 MT of coal, marking a 2.2% increase compared to the previous year. This figure represents approximately 65% of the company’s full-year production target of 838 MT, showcasing steady progress towards its goal.

Improved Offtake: Rising Demand Fuels Growth

Coal India’s offtake in December rose 2.5% year-on-year to 68.6 MT from 67 MT recorded in the same month last year. For the year-to-date period, offtake has increased by 1.6%, totalling 561.2 MT. This trend highlights sustained demand and efficient supply chain management by the company.

Production Patterns: Seasonal Influence on Output

Historically, Coal India’s production tends to be lower in the first half of the financial year due to the monsoon season, which hampers mining activities. However, output generally recovers in the second half, as seen in the current financial year. This pattern suggests the company’s ability to adapt to seasonal challenges and optimise output during favourable conditions.

Share Price Performance

Shares of Coal India rose 0.6% on January 1, 2024, trading at ₹386.30 on the NSE.  

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