State-run-miner Coal India Ltd (CIL) has registered a growth of 20% y-o-y to 295.44 million tonnes (mnt) in terms of coal sales via fuel supply agreements (FSAs) during the first half period of FY’23 (April-September 2022).
The miner saw strong coal demand boosted by the revival in industrial activities and higher-than-usual temperatures during summer that pushed power consumption to an all-time high. As a result, FSA allocations increased as these provide long-term supplies to the thermal power plants that were running on low inventory levels.
However, notwithstanding the FSA growth, sales via the e-auction route decreased by 45% y-o-y to 31.27 mnt in H1 period as CIL subsidiaries had curtailed coal offerings in auctions to ensure higher availability for power plants.
Apart from domestic supplies, the miner was also involved in imported coal to address the supply concerns of power plants. This came on the back of the government’s directive asking CIL to import coal on behalf of the power plants at a time when global prices were soaring.
The company reported sales of 0.09 mnt of imported coal at a price realisation of INR 13,530/t that garnered INR 123.84 crore for the quarter ending September.
Net profit zooms 144% in H1
CIL’s consolidated net profit of INR 14,876 crore in the first half period of FY’23 rose by 144% from INR 6,107 crore in the year-ago period.
The company’s revenue earnings were helped by higher allocation via FSAs. At the same time, there was support from e-auction sales as well.
The prevailing disparity in coal supply had resulted in competitive bidding amongst buyers, due to which coal was booked at higher bid prices in the auctions.
Notably, the price realisation for auction sales saw an exponential growth of 211% y-o-y to INR 4,911/t in H1 FY’23 as against INR 1,581/t in H1 FY’22, while the price fetched against FSA supplies, which are based on fixed payment basis, recorded a modest rise of 3% y-o-y to INR 1,429/t in the same period.
Overall, total turnover increased by 34% y-o-y to INR 64,930 crore in H1 FY’23, while net revenue for the period stood at INR 67,686 crore. On the other hand, expenses to the tune of INR 47,755 crore were incurred mainly on account of employee benefits and contractual obligations.
Leave a Reply