Coal India Ltd (CIL) reported a decline of 4% Y-o-Y in their coal production. The company has produced 40.74 MnT coal in May’17 against 42.587 MnT in May’16. Coal production has fallen for the second straight month on the yearly basis.
On the monthly basis, production has increased by 6% compared with 38.44 MnT in Apr’17.
However, overall production during first two months of FY18 (Apr’17-May’17) has decreased by 4% to 79.18 MnT compared with 82.677 MnT during Apr’16-May’16.
Coal Offtake:
Coal Offtake during May’17 stood 46.41 MnT with an increase of 2.5% M-o-M compared with 45.29 MnT in Apr’17. Also, recording an increase by 1.5% Y-o-Y compared with 45.53 MnT in May’16.
Moreover, Overall coal offtake during Apr’17-May’17 has increased by 4% to 91.7 MnT compared with 87.97 MnT in Apr’16-May’16.
The decline in coal output and an increase in shipments reflects CIL’s attempts to cut down inventories, as the company looks to clear stockpiles. The coal production is expected to remain under pressure amid subdued demand and high inventories.
Performance of Subsidiaries:
In term of coal production, South Eastern Coalfield Ltd (SECL) was the largest coal producer in May’17 followed by Mahanadi Coalfields Ltd (MCL).
Out of the 8 subsidiaries, only Central Coalfields Ltd (CCL) and North Eastern Coalfields (NEC) managed to achieve their monthly target of coal production.
SECL also topped in coal sales among the CIL’s subsidiary in May’17. Total coal offtake from SECL stood 12.57 MnT ahead of MCL which managed coal offtake of 11.16 MnT.
In addition, SECL achieved its monthly target for coal offtake along with NEC.
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