Coal India Q1 Results

Further fresh auction of coal mines to private players can also lead to higher competition for Coal India

Revenue stood at Rs 254.71 billion

The effects of mine grade revision has started reflecting on Coal India which posted a 23 per cent decline in its net profit at Rs. 2351.21 crore for the quarter ended June 30, 2017, missing street estimates.The net profit of the company in the corresponding quarter of the last fiscal year stood at Rs. 3065.26 crore.The average price realisation of the coal miner from fuel supply agreements (FSA) for the three months ended June 30 declined by Rs. 38 to bottom at Rs. 1201 a tonne as a result of the mine grade revision which severely impacted the topline. Nevertheless, Rs. 16 a tonne higher realisation over the notified price in e-auctions and higher coking coal prices saved the company from a posting a negative topline growth. Coal India's net sales during the period under review rose by four per cent at Rs. 19810.45 crore as against the earning of Rs. 19034.48 crore in the similar quarter of the 2016-17 fiscal year.FSA comprises 78 per cent of the company's turnover while the rest of .