Coal India surges 7% as arm set to overshoot production aim
The share price also received a boost after Coal India said that its aim of making capital expenditure of Rs 1,640 crore remains on track.
By Bhaskar Dutta, ETMarkets.com |
Agencies
NEW DELHI: Coal India’s shares skyrocketed as much as 7 per cent in early trade Thursday as the state-run mining giant said that its subsidiary Northern Coalfields Ltd is set to cross production target of 119 million tonnes for the current fiscal.
The share price also received a boost after Coal India said that its aim of making capital expenditure of Rs 1,640 crore remains on track.
The counter zoomed to a high of Rs 198 as against Rs 184.85 at previous close on the BSE. The stock soon gave up most of those hefty gains on profit booking, however, and was last trading 2 per cent higher.
The miner had on Tuesday produced 5.67 lakh tonne of the dry fuel, the highest single-day count since its inception, and the total output in the 2021-22 financial year so far stood at 110.5 million tonne (mt), up by six per cent on a year-on-year (y-o-y) basis, a PTI report quoting a government official said.
"Given the trend, we expect to cross the production target of 119 mt. We operate 10 fully mechanised open cast mines in Singrauli and Sonbhadra. Our annual off-take target is 126.5 mt and it stands at 114.74 mt till now with 16.37 per cent y-o-y growth," a company official told PTI.
Of the capital expenditure (capex) target of Rs 1,640 crore in the current year, the company has already spent Rs 1,498 crore and the capex is being deployed towards mine infrastructure, equipment and land acquisition, the official said to PTI.
Three projects, namely Jayant, Jhingurda, and Kakri, have achieved their annual coal production target for FY 2021-22, another NCL official said.
The share price also received a boost after Coal India said that its aim of making capital expenditure of Rs 1,640 crore remains on track.
The counter zoomed to a high of Rs 198 as against Rs 184.85 at previous close on the BSE. The stock soon gave up most of those hefty gains on profit booking, however, and was last trading 2 per cent higher.
The miner had on Tuesday produced 5.67 lakh tonne of the dry fuel, the highest single-day count since its inception, and the total output in the 2021-22 financial year so far stood at 110.5 million tonne (mt), up by six per cent on a year-on-year (y-o-y) basis, a PTI report quoting a government official said.
"Given the trend, we expect to cross the production target of 119 mt. We operate 10 fully mechanised open cast mines in Singrauli and Sonbhadra. Our annual off-take target is 126.5 mt and it stands at 114.74 mt till now with 16.37 per cent y-o-y growth," a company official told PTI.
Of the capital expenditure (capex) target of Rs 1,640 crore in the current year, the company has already spent Rs 1,498 crore and the capex is being deployed towards mine infrastructure, equipment and land acquisition, the official said to PTI.
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Three projects, namely Jayant, Jhingurda, and Kakri, have achieved their annual coal production target for FY 2021-22, another NCL official said.
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