Coal India Ltd.'s shipments slumped to a seven-month low in April as the nationwide lockdown to combat the coronavirus pandemic halted economic activity.
Shipments plunged 25 percent from a year earlier to 39.1 million tonnes last month, the Kolkata-based miner said in a filing on Friday. Among its subsidiaries, Bharat Coking Coal Ltd. reported the biggest decline of 63.6 percent, followed by Central Coalfields Ltd., which posted a 55 percent fall in shipments.
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The decline in production was less steep in comparison, falling 10.8 percent to 40.38 million tonnes. Its unit, Northern Coalfields Ltd.'s output remained largely unchanged, while Mahanadi Coalfields Ltd.'s production fell 1.8 percent, the smallest drop among all other subsidiaries.
However, the April-to-June period could be one of the worst quarters in Coal India's history, according to Amit Dixit, assistant vice president of research at Edelweiss Securities Ltd. Channel checks suggest that the e-auction premium has fallen substantially, Dixit told BloombergQuint.
In terms of monthly performance, he said production numbers are encouraging as it appears that some of the old issues might be easing, with Mahanadi Coalfields' performance being the bright spot.
Mahanadi Coalfields, which is Coal India's second-largest subsidiary, has incurred production losses in the past due to protests, intermittent work stoppages, and unavailability of land for expansion.
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