Coal India Ltd (CIL) is staring at dwindling sales and profit from e-auction in coming days as volumes sold via this profitable route are likely to drop 11% this fiscal.
Coal India Ltd (CIL) is staring at dwindling sales and profit from e-auction in coming days as volumes sold via this profitable route are likely to drop 11% this fiscal.
“I expect e-auction quantity to be 46 million tonne (mt) this fiscal against last year’s level of 52 mt. As on today, e-auction volume as a percentage of our total production is 10.28%. It will remain in that range, i.e above 10% for the full year against last year’s level of 11% plus,” chairman and managing director Narsing Rao told DNA Money.
During the first nine months of this fiscal, CIL sold 34.24 mt via e-auction, about 5.34% from previous year’s evel of 36.17 mt.
Realisation from e-auction during this period was `2,647 a tonne, higher than on an average Rs2,497 a tonne notched a year ago. So, despite a lower volume sold via e-auction this year till December, income was marginally higher at Rs9,064 crore over Rs9,030 crore earned during the nine months of the previous year.
By the end of the fiscal, CIL’s total income may, however, fall as higher per-tonne realisation might not be able to compensate drop in quantity.
Coal India would try to compensate drop in income from a-auction from higher output sold via notified prices, Rao said.
During the third quarter, CIL stepped up its off-take 9.2% to 120.45 mt against 110 mt a year ago, in line with market expectations.
A comfortable off-take growth, however, meant lower e-auction sales, where realisation also suffered because of falling global prices of the resource.
Sales through e-auction during the quarter fell by 1 mt, or about 9%, during the quarter to 10.48 mt while per-tonne realisation dropped to Rs3,082 from Rs3,274 a year ago.
“Many of the power plants which were sourcing some of their requirements through e-auction didn’t do so this quarter as they were supplied through the normal route. Now better grade of imported coal is available at reasonable prices, so e-auction customers such as cement and sponge iron makers are going for imported coal,” Rao said.
@SumitMoitra
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