Coal India - Price Hike Imminent: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Coal India Ltd.’s focus continues to be on meeting the power sector’s demand for coal. With a current despatch run-rate of 1.9-1.95 metric tonne per day, of which 1.6-1.65 mtpd is supplied to the power sector, the company is looking at a dispatch target of 670 million tonne in FY22 and e-auction sales volumes at around FY21 levels of more than 90 mnte. Power demand outlook and 45-50% e-auction premium in October 2021 indicate that demand is strong. If demand sustains, Coal India will ramp up supply in the coming months. Rising diesel cost and impending wage revision make us believe that Coal India will have to hike fuel supply agreement prices soon. Coal India has been able to reduce its receivables to sustainable levels (Rs 120 billion currently). We believe H2 FY22 will see higher offtake and higher realisation for both FSA and e-auctions..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Coal India - Price Hike Imminent: ICICI Securities

Coal India - Price Hike Imminent: ICICI Securities

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