(Reuters) – Coal India, which produces about 80% of the country’s coal, reported a lower third-profit on Monday, hurt by a fall in sales volumes and a drop in e-auction premiums due to weak power demand.
The company, which mainly produces non-coking thermal coal for power generation and industries, said its consolidated net profit dropped 17% to 85.06 billion rupees ($986.1 million) in the quarter ended Dec. 31.
Revenue from operations fell 1% to 357.80 billion rupees in the period.
Coal demand has remained soft in the reporting quarter, in line with power demand, which dropped steeply in the latter half of 2024, according to analysts.
The company’s average realisation from e-auction sales stood at 2,671 rupees per ton, lower than the 3,321 rupees per ton in the year-earlier period, while overall average price realisation of coal supplied fell by 58 rupees from a year ago.
Coal India gets 10% of its sales through e-auctions at near-spot rates, with the Kolkata-based company selling the rest of its output to domestic customers through long-term contracts. ($1 = 86.2580 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Shounak Dasgupta)
