Coal India rises to record highs after report says profit to rise 12% - Quoted on Bloomberg
Coal India Limited, the world’s biggest producer of the resource, climbed to a record in Mumbai after Daily News & Analysis said the company’s profit would rise 12% in the year ending March even as output declines.
Coal India gained as much as 7% to Rs 371.40 and was at Rs 357.85 at 10:43 a.m. local time. That’s the highest level since the stock started trading on Nov. 4.
Profit may rise to Rs 110 billion ($2.45 billion) after an increase in coal prices and savings from a reduction in staff, the newspaper reported, citing Chairman N.C. Jha. Production may decline to 430 million metric tons, a drop of 1 million tons from a year earlier, according to the report.
“The company has improved profitability through its pricing,” Dipesh Dipu, director energy and resources at Deloitte Touche Tohmatsu India Pvt., said in e-mailed comments. “These will certainly improve the margins. These improvements in margins may have been reflected in the market value of Coal India stocks.”
Two calls each made to the mobile phones of Jha and Finance Director A.K. Sinha seeking comment weren’t answered.
Coal India’s production would have been higher by 18 million tons this financial year if environmental restrictions aimed at curbing pollution hadn’t halted mining in some areas, Jha was cited as saying.
The increase in coal prices, effective Feb. 27, will boost revenue by about Rs 6.5 billion in the year ending March 31 and about Rs 62 billion in the next financial year, Kolkata- based Coal India said in a statement to the Bombay Stock Exchange, without giving details of the changes.
“Effective 2011, Coal India has revised the prices of coal 30% upward on average, while for higher grades of coal, this has been steep at nearly 200% to align the prices to import parity levels,” Dipu said.
Coal India gained as much as 7% to Rs 371.40 and was at Rs 357.85 at 10:43 a.m. local time. That’s the highest level since the stock started trading on Nov. 4.
Profit may rise to Rs 110 billion ($2.45 billion) after an increase in coal prices and savings from a reduction in staff, the newspaper reported, citing Chairman N.C. Jha. Production may decline to 430 million metric tons, a drop of 1 million tons from a year earlier, according to the report.
“The company has improved profitability through its pricing,” Dipesh Dipu, director energy and resources at Deloitte Touche Tohmatsu India Pvt., said in e-mailed comments. “These will certainly improve the margins. These improvements in margins may have been reflected in the market value of Coal India stocks.”
Two calls each made to the mobile phones of Jha and Finance Director A.K. Sinha seeking comment weren’t answered.
Coal India’s production would have been higher by 18 million tons this financial year if environmental restrictions aimed at curbing pollution hadn’t halted mining in some areas, Jha was cited as saying.
The increase in coal prices, effective Feb. 27, will boost revenue by about Rs 6.5 billion in the year ending March 31 and about Rs 62 billion in the next financial year, Kolkata- based Coal India said in a statement to the Bombay Stock Exchange, without giving details of the changes.
“Effective 2011, Coal India has revised the prices of coal 30% upward on average, while for higher grades of coal, this has been steep at nearly 200% to align the prices to import parity levels,” Dipu said.
posted by Dipesh Dipu @ 10:50 PM
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