Coal India ends FY'22 with historic high output and off-take

Coal India Limited (CIL) ended FY'22 scripting a historic high in coal production, off-take and coal despatch to power plants.

Amid rising coal demand from the country's generation companies, CIL's supplies to the power sector soared to a record 540.4 million tonnes (MTs) with a whopping 95.4 MT volume increase. This represents 21.4% growth compared to 445 MT supplies of FY'21.

Even compared to standard pandemic free FY'20 and FY'19 the growth in supplies to power sector logged 16% and 10% respectively.

The sharp 95.4 MT supply expansion in FY'22 is higher than the collective increase achieved during the previous seven year period. Coal supplies to power sector rose to 445 MTs in 2020-21 from 353.8 MTs in 2013-14, up by 91.2 MTs.

CIL has turned out a prolific performance, even as the second wave of Covid during the first quarter of FY, and the extended monsoon threatened its production and loading operations. Handling volatility of coal demand from the power sector in second half of the year was another challenge.

In yet another new high, CIL produced 622.6 MTs of coal eclipsing the previous high of 607 MTs recorded in 2018-19. After a shrinkage in last two years, CIL came back strongly with 26.4 MT production increase in FY'22. Compared to 596.2 MTs of FY'21, the growth is 4.4%.

CIL's total off-take at nearly 662 MTs posted a sharp 15.3% during FY'22. The volume expansion is a robust 87.4 MTs compared to 574.5 MTs of FY'21.

The annual increment of 87.4 MT total off-take is more than the combined rise of 85.1 MTs of last six years, from 489.4 MTs in 2014-15 to 574.5 MTs in 2020-21.

CIL's average loading at the highest ever level of 271.2 rakes per day grew by 12.3% compared to the average of 241.4 rakes loaded in FY'21.

With focus on production boost CIL has cleared 16 coal mining projects of which 7 are green field and 9 expansion projects. Combined, they have a total capacity of nearly 100 MT/Y and incremental capacity ot 56.7 MT/Y. Of the identified 15 MDO projects, work order has been issued for 5 projects of 96 MT/Ys capacity during FY'22.

CIL which began FY'22 with 99.13 MT of stock at its pitheads could liquidate 38.4 MTs of coal at the end of FY'22, the highest liquidation for any year.

Coal output and offtake targets are pegged at 700 MTs for FY'23 and the company is committed to achieve them, sustaining the performance of FY'22.

Shares of Coal India Limited was last trading in BSE at Rs. 183.00 as compared to the previous close of Rs. 182.95. The total number of shares traded during the day was 458847 in over 5109 trades.

The stock hit an intraday high of Rs. 184.75 and intraday low of 181.75. The net turnover during the day was Rs. 84071830.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 FY2022 HistoricHigh Production Offtake Despatch