Coal India Ltd., the world’s biggest miner of the fuel, reported first-quarter profit that missed analyst estimates on lower prices from electronic auctions.
Net income declined to 37.3 billion rupees ($612 million) in the three months ended June from 44.7 billion rupees a year earlier, the company said in a statement in Kolkata yesterday. That lagged behind the 42.8 billion-rupee median of 35 analysts’ estimates compiled by Bloomberg.
Coal India Chairman S. Narsing Rao said yesterday the average realization in the quarter through e-auctions declined to 2,140 rupees a ton from 2,561 rupees a year earlier. The miner, which accounts for more than 80 percent of the nation’s production of the fuel, targets production to increase 5.8 percent to bridge the gap between demand and local supplies.
Sales fell to 164.7 billion rupees from 165 billion rupees.
Coal India conducts spot sales of coal through electronic auctions to help consumers that don’t have supply agreements with the miner. The company’s realization from utility consumers in the quarter was also lower than a year earlier, Rao said at a press conference in Kolkata.
Coal India shares fell 5.7 percent to 254.60 rupees in Mumbai on Aug. 2. The stock has declined 28 percent this year, compared with a 1.4 percent drop in the benchmark S&P BSE Sensex.