Coal India Ltd suffered further downside in monthly coal production as subdued performance from its major subsidiaries continues.
CIL’s coal production decreased 10% on the month to 34.77 MnT in Aug’19 compared with 38.5 MnT in Jul’19. Notably, coal output fell 10% Y-o-Y noted from 38.78 MnT in Aug’18, had attained its lowest total since Aug’16.
The month of August typically depicts lower coal output on the onslaught of monsoon, however, the situation was further aggravated by a below par performance from SECL and MCL.
SECL’s coal production dropped 18% Y-o-Y to 8.83 MnT in Aug’19, which was also 14% lower on the month from 10.32 MnT in Jul’19.
Coal output from MCL continued its declining trend seen since beginning of the FY20.
Production at MCL was recorded at 6.73 MnT during Aug’19, down 27% Y-o-Y from 9.19 MnT in Aug’18. It is pertaining to note that the company had experienced force majeure situation at its Bharatpur coal mining project following the landslide accident which had largely affected coal volumes during the month.
Meanwhile, NCL emerged as the second-largest coal producer during Aug’19 after SECL. The company had attained output of 8.61 MnT which was 11% higher on the year from 7.73 MnT in Aug’18.
Over the course of first 5 months of FY20 (Apr-Aug’19), CIL’s coal production has reached 210.23 MnT, down 3% Y-o-Y from 216.21 MnT in the corresponding period of FY19.
CIL’s Coal Off-take:
Coal off-take during August too contracted by 10% Y-o-Y to 40.47 MnT as compared with 45.15 MnT in the year-ago month.
Highest y-o-y fall was recorded at MCL, wherein the company had suspended coal supplies from Bharatpur mines following the landslide mishap. Off-take from MCL stood 8.20 MnT in Aug’19, down 23% from 10.66 MnT noted in the year-ago period.
MCL had withdrawn the supply of monthly scheduled quantity for the month of Aug’19, to be made against the bid quantities acquired under phase-I of exclusive & special forward e-auctions and the bid quantity under spot e-auction held on 26 Jul’19, from Bharatpur OCP.
In addition, it was also informed that supply of monthly scheduled quantity for Aug’19 to the linkage auction FSA customers having Bharatpur OCP as primary source, would be made from respective secondary sources.
Highest coal off-take was registered at SECL, followed by NCL, MCL, CCL and ECL in Aug’19.
Barring NCL, ECL and CCL, all the other subsidiaries of CIL had posted a y-o-y fall in coal off-take during the month, which can also be applied to the monthly performance regarding coal production.
Leave a Reply