CIL's volumes recover; investors should keep an eye on e-auction premiums

While dispatches crossed the 600 million tonne-mark in FY19, e-auction premiums have started declining with fall in international coal prices

Coal India’s eight per cent year-on-year growth in dispatches in March 2019, led by support from key subsidiaries, is an improvement over the earlier declining volume trend. The higher dispatches from its larger subsidiaries are positive and indicate that bottlenecks around dispatches may be getting addressed. Meanwhile, the growth of five per cent year-on-year in dispatches to 608 million tonnes (MT) for FY19 also came ahead of analysts’ estimates, which were reduced post-Coal India reporting a decline of 2.4 per cent year-on-year in January.

As the latest volume figures may ease some investor concerns, an analyst at Motilal Oswal Securities