Coal India Profit Rises on Higher Demand From Power Producersby and
Shipments rose 10 percent in three months ended Sept. 30
Production increased 5.6 percent during second quarter
Coal India Ltd.’s quarterly profit rose 16 percent as government support helped the world’s biggest miner of the fuel boost production.
Net income climbed to 25.4 billion rupees ($385 million) in the three months ended Sept. 30 from 21.9 billion rupees a year earlier, the Kolkata-based company said Friday in a stock exchange filing. That trails the 26.5 billion rupee median of 24 analyst estimates compiled by Bloomberg. Sales rose 8 percent to 169.6 billion rupees from 156.8 billion rupees.
The state-run miner, under pressure from the government to double its output in the next five years, is pushing for record production and shipments this year. Prime Minister Narendra Modi, who is focusing on strengthening the nation’s infrastructure to attract overseas investors into the country, has called for consistent supplies of coal to industry and power plants to reduce imports.
India’s use of coal, the mainstay of the country’s power generation, will increase as cities add about 315 million people by 2040, the International Energy Agency said in a Nov. 10 report.
Coal India’s shipments in the quarter rose 10 percent to 122 million metric tons, while production rose 5.6 percent to 108.2 million tons, according to company data. The monsoon months of July, August and September are the worst for the company’s business, with rain flooding several mines and slowing the movement of coal-laden trucks.
The shares advanced to 337.7 rupees in Mumbai. The company reported the results after trading ended. The stock has declined 12 percent this year, compared with a 6.9 percent drop in the benchmark BSE S&P Sensex.