Coal India Ltd (CIL) has reported an uptick in monthly coal production during Sep’18 thereby ending a 3-month declining streak. CIL’s output during Sep’18 increased 4% M-o-M to 40.24 MnT from 38.8 MnT in Aug’18.
The year-on-year growth in CIL’s coal production has certainly slowed down in the past two months; however, it was the 14th consecutive month in which the coal company has managed to drive-up the monthly production on the y-o-y basis. Coal production in Sep’18 was up 4% from 38.77 MnT in Sep’17.
An uptrend in coal output is expected from Oct’18 onwards as seen from the company’s previous years performance, but it will be difficult for the coal miner to meet its revised annual production target.
Recently, CIL had raised its production target to 652 MnT for FY19, an ambitious increase of 22 MnT from its previous target of 630 MnT set in Apr’18. The upward revision would be difficult to attain given that the miner has failed to achieve its previous year’s target, and is struggling to lift its production despite strong demand from power sector.
Coal production over the first half of fiscal year (Apr’18-Sep’18) has reached 256.47 MnT, which is not even the half of the annual target set for FY19.
CIL’s coal dispatch continued its fall on limited rake availability, as off-take was 3% lower on the month in Sep’18. Dispatch during the month was 43.91 MnT against 45.22 MnT in Aug’18, while recording a subtle increase of 0.8% Y-o-Y from 43.57 MnT in Sep’17.
Coal dispatch will likely to be prioritised to the power sector as plants continue to hold low inventories. Total dispatch during the half year period has totaled 290.81 MnT, up 8% Y-o-Y from 269 MnT recorded in the corresponding period last year.
Subsidiary-wise Performance in Sep’18:
SECL was the largest coal producer among the 8-subsidiaries of CIL, and also the only one to have witness a fall in monthly coal output in Sep’18.
SECL’s coal production dropped 8% M-o-M to 9.84 MnT in Sep’18 compared with 10.72 MnT in Aug’18.
Highest coal dispatch was recorded at MCL (10.71 MnT) who marginally edged out SECL (10.7 MnT) in term of coal supplies in Sep’18.
Source: CIL | Quantity in MnT
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