Coal India posts better-than-expected Q2 results on high power demand amid weak monsoon
Power demand in India, which usually peaks in May due to extreme summer heat, remained high in the reporting quarter due to unusually dry weather and higher economic activity, amid a drop in hydroelectric output.
Coal India on Friday reported better-than-expected second-quarter profit, helped by high power demand and boosted production amid a weak monsoon.
The state-run miner posted a consolidated net profit of Rs 6,800 crore ($816.3 million) for the quarter ended Sept. 30, up 12.5 per cent from last year.
It also beat analysts' estimate of Rs 6,370 crore, as per LSEG data.
Power demand in India, which usually peaks in May due to extreme summer heat, remained high in the reporting quarter due to unusually dry weather and higher economic activity, amid a drop in hydroelectric output.
The country's power demand hit a high of 241 gigwatts (GW) in the second quarter, surpassing the Central Electricity Authority's target of 230 GW for fiscal 2024 as hydropower generation fell 11 per cent due to reduced rainfall caused by El Nino, Elara Capital said in a note.
Thermal power - derived from burning fuels such as coal - had to fill the gap as nearly 75 per cent of India's power generation comes from the fossil fuel.
Coal India's revenue grew 9.8 per cent to Rs 32,776 crore, also beating the estimates, as production of raw coal jumped 13.1 per cent. Analysts had expected a revenue of Rs 32,366 crore.
Total expenses grew 9.4 per cent to Rs 26,000 crore on the back of higher employee and contractual expenses. However, its raw materials cost fell 15.1 per cent.
The company also declared its first interim dividend of Rs 15.25 per share for the ongoing financial year.
In May, Coal India had raised prices of non-coking coal by 8 per cent for high grades, which it said would add an extra revenue of Rs 2,703 crore in the balance of the fiscal.
($1 = Rs 83.304)
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 7 SIP Mutual Funds in 1 Year: What Rs 10,000, Rs 15,000, and Rs 20,000 SIPs have given in each fund
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
Special Live Trading Session on Saturday: Know why BSE, NSE will remain open on May 18; check timings
If you make RDs of Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 in post office, what will be your maturity amount?
Gold and Silver rate today (May 16, 2024): Yellow metal futures subdued; white metal hits record high breaches Rs 87,000 mark
06:24 PM IST