Nov. 13 (Bloomberg) -- Coal India Ltd., the world’s largest producer of the fuel, posted a second-quarter profit that missed analyst estimates amid a drop in production.
Net income in the three months ended Sept. 30 was 25.9 billion rupees ($516 million), or 4.10 rupees a share, Coal India said in a stock exchange filing yesterday. Year-earlier figures weren’t provided because the company wasn’t listed at the time. The median estimate of 18 analysts surveyed by Bloomberg was a profit of 27.2 billion rupees. Sales were 131.5 billion rupees.
The state-run company’s production fell in the quarter after heavy monsoon rains halted output of coal, used to fire more than half of the power generation capacity in Asia’s second-fastest growing major economy. Electricity generation in September dropped 3.5 percent from August, while the peak-hour deficit reached 13.9 percent, the highest since April 2010.
Coal India was unchanged at 326.10 rupees in Mumbai on Nov. 11. The stock, which was sold at 245 rupees apiece in an initial public offering in October 2010, has gained 3.6 percent this year, compared with a 16 percent decline in the benchmark Sensitive Index.
Production in the second quarter was 80.3 million tons, while the volume of sales was 93.7 million tons, according to the filing.
The miner plans to boost output by 4.8 percent to 452 million tons this fiscal year, according to an agreement signed with the government. Coal India produced 431.3 million tons of coal in the year ended March 31.
Coal India, which accounts for more than 80 percent of India’s production of the commodity, expects profit in the current financial year to rise about 10 percent to 120 billion rupees, Chairman Nirmal Chandra Jha told reporters in Kolkata yesterday.
Production in the first six months of the year dropped 5 percent because of heavy rains and a one-day strike. A decline in full-year output would be the company’s first since at least 1998, Jha said Nov. 2.
The miner, based in Kolkata, increased prices in February and expects to add 62 billion rupees in revenue this financial year. Prices may be raised further after wages are revised.
Coal India is in negotiations with workers over a wage agreement due this year. Wages are decided every five years for non-executive employees and they were last increased by an average 24 percent in July 2006.
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