State-run miner, Coal India Ltd (CIL), maintained robust performance in terms of coal production during February 2023, which has put the company on the brink of attaining the target for ongoing fiscal (FY23).
CIL’s coal production increased by 7% y-o-y to 68.77 million tonne (mnt) in February 2023 compared to 64.26 mnt in February 2022.
Production fell m-o-m on absolute terms due to lesser number of working days in February. Nevertheless, the production level was scaled to 2.46 mnt/day in February as against 2.32 mnt/day in January.
During April 2022-February, 2023, CIL’s total production of 619.7 mnt posted a strong 14.3% growth over 542.4 mnt of the same period last year. Notably, with a quantum gain of 77.3 mnt, CIL is well set to breach the production target of 700 mnt for FY23.
Asking rate for balance production
In order to achieve the balance volume of the target, CIL needs to produce 80.3 mnt in March, 2023.
At the start of FY23, CIL had begun its 700 mnt target chase with an asking growth rate of 12.4% against the production of 622.6 mnt recorded in FY22 — which was its highest ever production recorded in a fiscal.
On the back of a steady performance, where a double-digit y-o-y growth in production was registered in eight months during April-February period, the asking growth rate for March has shrunk to a mere 0.07%.
Historically, March has been a fruitful period for CIL where its production peaks for the fiscal taking advantage of the dry season.
This indicates that the balance production should prove to be a light work for the company given that it had previously attained coal production of 84.36 mnt back in March, 2020.
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