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Coal India's profit drops due to weak power demand

Coal India (which produces about 80% the coal in India) reported a decline in quarterly profits on Thursday, as shipment volumes and price fell amid weak demand for electricity.

The company's net profit for the first quarter of 2018 fell 20% on an annual basis to 87.43 trillion rupees (998 million dollars).

Revenue from operations fell 4.4% to 358,42 billion rupees.

In the first half 2025, coal-fired electricity generation in India declined by almost 3%.

Meanwhile, overall power output growth declined by 1.5% as a milder summer -- driven by earlier-than-expected monsoon showers -- reduced demand for coal.

Coal India’s average realisation per ton from the so-called electronic auction sales was 2,331.51 Rupees in June-quarter. This is lower than the 2,410.94 Rupees in the previous period. However, the overall average price of coal supplied increased by two rupees.

The company sells its products to domestic customers on long-term contracts. It gets 10% of sales from e-auctions. ($1 = 87.6040 Indian Rupees) (Reporting and editing by Manvi Pan and Anuran Sahdhu in Bengaluru)

(source: Reuters)