- CIL’s FY’25 production up 1% y-o-y
- Dispatches see modest growth of 1.3%
Coal India Limited (CIL), the world’s largest coal producer and a Maharatna PSU, has published its provisional coal production and offtake data for FY’25. While CIL experienced a slight increase in coal production, it missed its revised production target for the fiscal.
Additionally, coal production in March 2025 showed a year-on-year (y-o-y) decline, further impacting its performance.
FY’25 performance
In FY’25, CIL’s total coal production reached 781.1 mnt, reflecting a modest 1% y-o-y increase from the 773.6 mnt in FY’24. Mahanadi Coalfields Limited (MCL) emerged as the standout performer, recording a 9.3% y-o-y growth in production, reaching 225.2 mnt.
In contrast, South Eastern Coalfields Limited (SECL) faced a setback with a 10.6% y-o-y drop, producing 167.5 mnt. Northern Coalfields Limited (NCL), meanwhile, saw a slight increase of 2%, with production touching 139 mnt.
Revised production guidance missed
CIL had set a production target of 806-810 million tonnes (mnt) for FY’25, a reduction from its earlier forecast of 838 mnt. This revision was due to lower output from key subsidiaries such as South Eastern Coalfields Limited (SECL) and Bharat Coking Coal Limited (BCCL). Despite the lower guidance, CIL’s production for FY’25 still showed a 1% y-o-y increase compared to the 773 mnt achieved in FY’24. However, it fell short of its revised target.
In March, CIL produced 85.8 mnt of coal, a 3.1% y-o-y decrease from the 88.6 mnt in March 2024. However, coal dispatches for the month totaled 69 mnt, a minor 0.3% increase y-o-y.
Typically, Coal India experiences reduced production in the first half of the year due to the impact of the monsoon. However, the company usually compensates for this dip by ramping up production during the second half of the year.
Offtake performance
CIL’s total coal offtake for FY’25 reached 763.2 mnt, marking a modest 1.3% increase from the 753.5 mnt in FY’24. This reflects a relatively flat growth rate, indicating that while dispatches increased slightly, the overall pace was not as robust as anticipated.
Mahanadi Coalfields Limited (MCL) led CIL’s performance, dispatching 212 mnt of coal in FY’25, a 6.5% increase. In contrast, South Eastern Coalfields Limited (SECL) saw a 5.4% decline, with dispatches totalling 170.8 mnt, due to logistical issues and production slowdowns. Northern Coalfields Limited (NCL) saw a slight 0.1% increase, reaching 137.7 mnt, contributing modestly to CIL’s overall offtake.
Year of growth despite setbacks
CIL’s FY’25 performance reflects a combination of growth and challenges. While the company achieved a slight increase in production and dispatches compared to the previous year, it missed its revised production target. The underperformance in March and the decline from SECL highlight areas that need attention.
Looking ahead, CIL will likely focus on addressing the operational issues affecting its underperforming subsidiaries and continue to ramp up production in the latter half of the fiscal year. The company remains a key player in the coal industry and is positioned to meet long-term coal demand with its vast production capacity.
Leave a Reply