Coal India Surges As Production Misses Targets.
Shares of Coal India BSE 3.55 % surged up to 3 per cent in Thursday’s trade after the company missed its production target of 44.64 million tonnes in May.
CIL produced 42.58 million tonnes of coal during the month. The news came as a relief for the industry as a supply glut in the market threatened CIL’s pricing power.
Reacting to the development, the scrip gained 2.66 per cent to hit a high of Rs 304.80 on the BSE. The stock declined 9 per cent in the year so far. Coal offtake was lower at 45.53 million tonnes in May compared with the target of 50.90 million tonnes, the company said in a filing to the bourses.
In April and May, coal offtake stood at 88.23 million tonnes against the target of 102.36 million tonnes .
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