Coal India's Q1FY25 E-Auction Revenue Drops Despite Increased Volumes

Coal India reported a 7% decline in average realization from e-auctions to Rs 5,589 crore in Q1FY'25, despite a 37% increase in e-auction volume. The average e-auction rate per tonne fell sharply by 35%. However, the company saw a 4% rise in net profit to Rs 10,943 crore.

In the first quarter ended June 2024, Coal India's average realization from e-auctions dropped by 7% to Rs 5,589 crore, compared to Rs 6,023 crore in the same period last year. This decline came despite a significant 37% increase in e-auction volume to 23.18 million tonnes.

Key drivers of profitability for the mining giant included e-auction volume and realization price. The average e-auction rate per tonne saw a sharp decline of about 35%, falling from Rs 3,740 per tonne in April-June 2023 to Rs 2,411 per tonne in the same period of this year.

An analyst noted that in 2023, high electricity demand and strong global prices resulted in better e-auction prices for Coal India. During Q1FY'25, the average realization for Fuel Supply Agreement (FSA) coal slipped to Rs 1,524 per tonne, compared to Rs 1,536 per tonne the previous year. Nevertheless, Coal India reported a 4% increase in consolidated net profit to Rs 10,943 crore and marginal growth in revenue from operations to Rs 36,465 crore.

(With inputs from agencies.)