Coal India Ltd (CIL) has reported a subdued sales in coal e-auctions in its latest quarterly results, as meager coal availability had adversely affected its earning from the spot market.
CIL’s coal volume in e-auction was down 33% Y-o-Y to 9.84 MnT in Q3 FY20 (Sep-Dec’19) as against 14.65 MnT in Q3 FY19. Allotted quantity for e-auction was also 36% lower on the quarter from 15.49 MnT in Q2 FY20.
Incidentally, the sales volume had attained its lowest total since Q1 FY17 (the period from which CoalMint has started tracking CIL’s quarterly results).
Heavy rainfall particularly during July to October last year had deteriorated mining operations and weighed on CIL’s output and supplies. Apparently, the coal allocation intended for e-auctions was lowered to raise the volume intended for the FSA customers.
Sales volume envisaged for FSA contracts grew 23% Q-o-Q to 127.69 MnT in Q3 FY20, but was noted 6% lower year on the year from 135.82 MnT in Q3 FY19.
Price Realization Summary:
Lower coal allocation in e-auction had decreased CIL’s earning from the same to INR 2581.05 Crores during Q3 FY20, down 38% Y-o-Y from INR 4171 Crores in Q3 FY19.
Price realization in e-auction for the coal sold in the period was recorded at INR 2623/MT, which was 8% lower on the year from INR 2847/MT but had increased 30% Q-o-Q from INR 2019.59/MT in Q2 FY20.
Price realization of coal sold under FSA contracts was marked INR 1411/MT in the third quarter period of FY20, rising 6% Y-o-Y from INR 1334/MT in Q3 FY19 period.
Supply of Washed Coal:
Sales volume of washed coal increased 2% Q-o-Q to 2.33 MnT in Q3 FY20, comprising 2.04 MnT of non-coking grade and remaining 0.29 MnT of coking grade. However, the volume was marked 20% lower on the year from 2.92 MnT in Q3 FY19.
The sales were concluded at an average price realization of INR 2667/MT in the quarter period, wherein the resultant value of washed coking coal was marked superior at INR 7085/MT comparable to INR 2039/MT noted for washed non-coking coal.
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