Stocks

Coal India soars 5 % on good earnings, price rise news

PTI Mumbai | Updated on March 12, 2018 Published on May 28, 2013

Shares of state-owned Coal India today surged as much as five per cent after the company reported 35 per cent rise in its fourth quarter net profit and on reports that the company would raise coal rates by 10 per cent.

CIL reported nearly 35 per cent rise in consolidated net profit at Rs 5,413.9 crore for quarter ended March 31 on the back of lower expenses and announced that there would be rationalisation of coal prices from today, which would lead to an annual additional revenue of around Rs 2,511.58 crore.

Reacting to the announcements, shares of the company opened on a bullish note and touched an early high of Rs 329.30, higher by 5.03 per cent from its previous closing price on the BSE.

Similar movement was witnessed on the National Stock Exchange as well, where the shares surged as much as 4.52 per cent to an early high of Rs 328.

Shares of the company were later trading at Rs 324.35, up 3.46 per cent on the BSE and at Rs 324.95, higher by 3.55 per cent on the NSE at 1216 hours.

Marketmen attributed the jump in the counter to the announcements made yesterday, which helped in the uptrend in the stock even as the broader market was trading on a flat note.

The world’s largest coal producer said it would raise coal prices by an average of 10 per cent on lower grades, while there would be a price reduction for higher grades by an average of 12 per cent with effect from today.

“Due to the price rationalisation, the company will get an additional annual revenue benefit of Rs 2,511.58 crore, Coal India said.

Published on May 28, 2013
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