Coal India Ltd (CIL) has reported a massive jump in profit earnings despite marginal increase in coal offtake in Q3FY23 (October-December, 2022).
The steep rise in profits came on the back of a surge in bid prices in spot e-auctions conducted by CIL during the same period.
As per data released by CIL, coal offtake rose marginally by 1% y-o-y to 176 million tonnes (mnt) in Q3. Meanwhile, during the same period, raw coal sales totalled 173 mnt, while sales of washed coal and other by-products totalled 3 mnt.
It is noteworthy that during Q3, CIL’s coal production stood at 180 mnt, up 10% y-o-y.
Profits surge 69%
In terms of financial performance, CIL’s profit after tax during Q3 rose to INR 7,719 crore from INR 4,557 crore in Q3FY22, a robust 69% growth y-o-y.
Furthermore, the company’s net sales increased by 25% y-o-y to INR 32,429 crore, up from INR 25,991 crore in the previous year’s third quarter.
Auction price realisation up INR 3,100/t y-o-y
Average prices of coal sales via auction in Q3 have risen by 159%, or INR 3,099 per t, compared to Q3FY22, while offerings fell by 44% y-o-y to 14.65 mnt.
In Q3, the average price of coal under the e-auction segment was INR 5,046/t versus INR 1,947/t in the year-ago period.
However, the average price of coal sales via auction in Q3 has seen a correction of 17% from INR 6,061/t in Q2 as supplies via the e-auction route rose by 41% q-o-q.
FSA: Uptick in sales, prices
Coal sales via fuel supply agreement (FSA) in Q3 received better average price realisation despite the increase in volumes. Average price realisation stood at INR 1,482/t in Q3, an increase of 8% y-o-y and 5% q-o-q.
In volume terms, FSA sales increased by 13.2 mnt, or 9%, to 158 mnt in Q3 compared to 144.6 mnt in the year-ago period. On a quarterly basis, sales witnessed an uptick of 11%.
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