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Coal India hits a record low

Q1 production almost flat, grew 0.4% yoy to 102.87 million tonnes against target of 106.88 million tonnes.

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SI Reporter Mumbai
Last Updated : Jul 08 2013 | 3:36 PM IST
Coal India has dipped 4% to Rs 285, its lowest price since listing on November 2010, on the Bombay Stock Exchange (BSE). The stock opened at Rs 297 and has seen a combined 1.43 million shares changing hands on the counter on BSE and NSE.

The stock of the world’s largest coal miner has underperformed the market by falling 6.25% in past one week after the company missed its production and offtake targets both for June and the first quarter of the current fiscal. The benchmark Sensex has declined less than 2% during the week.

The company’s production was almost flat, growing by 0.4% year-on-year (yoy) to 102.87 million tonnes (MT) in the April-June quarter against target of 106.88 MT million, according to the provisional figures disclosed by the company.

The company said it produced 32.5 MT of coal in June, missing the month’s target of 35 MT.

Analyst at Kotak Institutional Equities expect that Coal India will report 11.6% fall in its consolidated net profit at Rs 4,480 crore for the quarter ended June 2013, while net sales will grew 3.6% at Rs 16,500 crore on yoy basis.

The company’s volume growth will be restricted to 2% yoy due to the early onset of the monsoons, analyst said in a report.

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First Published: Jul 08 2013 | 12:24 PM IST

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