Business News
Coal India hikes non-coking fuel price; stock soars over 3%
The miner was compelled to revise prices in the wake of rising costs.
State-run miner Coal India (CIL) on Tuesday has said its board has approved a hike in non-coking coal prices for both both power and non-power consumers with immediate effect.
The average price hike could be around 10 %.
Due to this revision, the world’s largest coal miner will earn an incremental revenue of ₹ 1,956 crore for the remaining period of the 2017-18 fiscal year while total revenue will be ₹6,421 crore, the company said in a regulatory filing.
The price hike will be applicable to “all subsidiaries of Coal India, including NEC for regulated and non-regulated sectors”, the filing said.
Shares of the company soared by 3.67 % to ₹ 298.40 on BSE after the announcement.
The miner was compelled to revise prices in the wake of rising costs which was a drag on its profitability for the last few quarters.
CIL had last revised price for the fossil fuel in May 2016 by 6.3 % on an average that helped the miner to collect additional revenue of ₹ 3,234 crore in 2016-17.
Coal India slapped a levy of ₹ 50 per tonne as coal evacuation charges in early December which is set to earn the public sector miner ₹ 2,500 crore every year.
In the remaining part of 2017-18, additional revenue from evacuation levy will be ₹ 800 crore.
The recent wage revision had pushed up its annual employees cost by additional €₹ 5,600 crore.
Meanwhile, Coal India also said sales bills will be raised on GCV (kcal/Kg) basis with effect from April 1, 2018 and the present mode of raising bill would continue till then.
