For Coal India Ltd, better volumes in June trigger hopes of improved prospects going ahead. Provisional figures reported by the company for June indicated a 2% year-on-year improvement in production and 23% improvement in offtake.
For the June quarter, the company’s production volumes grew 2.4% and offtake improved 32.7%. Though the higher offtake comes on a low base of last year, there is optimism that the recovery in power demand and economic activities may help the company improve its performance going forward
“The company’s Q1FY22 volume at 160.4mt (million tonne) is the highest ever for the first quarter and is enough to meet our FY22 estimated offtake of 614mt,” said analysts at Edelweiss Securities Ltd. Besides, “pick up in power sector volume-up 38% YoY-in 2Months FY22, higher e-auction premium and reducing receivables are likely to aid cash accretion”, they added.