Coal India rose 1.69% at Rs 351.30 at 11:19 IST on BSE, with the stock gaining for the second straight day after the company revised its fuel supply pact with power units commissioned after December 2009 to include new agreed clauses.
The company made the announcement after trading hours on Tuesday, 7 August 2012. The stock has risen 1.87% in two consecutive sessions from a Rs 344.85 on Tuesday, 7 August 2012.
Meanwhile, the BSE Sensex was up 48.54 points, or 0.28%, to 17,649.10.
On BSE, 1.02 lakh shares were traded in the counter as against an average daily volume of 1.90 lakh shares in the past one quarter.
The stock hit a high of Rs 352.50 and a low of Rs 345 so far during the day. The stock had hit a 52-week high of Rs 403.85 on 18 August 2011. The stock had hit a 52-week low of Rs 293.75 on 22 December 2011.
The stock had underperformed the market over the past one month until 8 August 2012, falling 1.69% compared with the Sensex's 0.45% rise. The scrip had also underperformed the market in past one quarter, rising 3.15% as against 6.37% rise in the Sensex.
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The large-cap firm has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.
Coal India (CIL) has revised its penalty structure from the earlier 0.01% to anywhere between 1.5% to 40% depending on the level of shortfall. Consequently, CIL will be required to pay 1.5% of the shortfall value if coal delivered is between 65-80% of the Annual contracted quantity (ACQ), while in the worst case scenario, the penalty would be as high as 40% if CIL supplies below 50% of ACQ.
Coal India board also agreed to pool imported and domestic coal supplies provided all existing consumers and stakeholders agree to the proposal. Price pooling denotes fixing a price for coal supplied as an average of the prices of both imported and domestically produced coal.
Coal India Chairman S. Narsingh Rao was quoted by media as saying, "We have no objection to pooling of prices if it is acceptable to all stakeholders."
Reports suggest that with pool pricing, power plants will have to pay a higher price for coal by Coal India.
On a consolidated basis, Coal India's net profit fell 4.91% to Rs 4013.41 crore on 29.4% growth in net sales to Rs 19418.99 crore in Q4 March 2012 over Q4 March 2011. The company will announce Q1 results on 13 August 2012.
Coal India is the single largest coal producer in the world. Operating through 81 mining areas, the company is an apex body with 7 wholly-owned coal producing subsidiaries and one mine planning and consultancy company. The company also fully owns a mining company in Mozambique christened as 'Coal India Africana Limitada'. The Government of India owns 90% stake in Coal India (as at end March 2012).
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