Bharat Coking Coal Shares Decline 8% Amid 25.5% Drop in May Raw Coal Production
Bharat Coking Coal Ltd Sees 8% Slump in Shares Amid Sharp Decline in Coal Production
Shares of Bharat Coking Coal Ltd (BCCL) fell nearly 8% on Monday following the company's report of a significant decline in coal production for May. The stock was trading 7.89% lower at Rs 38.08 at 3:18 pm.
BCCL's Provisional Production Data Reveals Alarming Trends
BCCL's provisional production data showed a sharp decline in raw coal output, which fell 25.5% year-on-year to 2.28 million tonnes in May from 3.06 million tonnes a year earlier. This decline was led by lower production across both coking and non-coking coal segments. Coking coal output dropped 25.8% to 2.13 million tonnes, while non-coking coal production fell 21.9% to 0.15 million tonnes during the month.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Production by Mine Type Shows Widespread Decline
Production from opencast mines declined 25.7% to 2.23 million tonnes, while output from underground mines fell 18% to 0.05 million tonnes. For the April-May period, raw coal production stood at 4.27 million tonnes, down 33.8% from 6.45 million tonnes in the corresponding period last year.
| Production Type | April-May 2023 | April-May 2022 | % Change |
|---|---|---|---|
| Raw Coal Production | 4.27 million tonnes | 6.45 million tonnes | -33.8% |
| Overburden Removal | 10.17 million cubic metres | 17.75 million cubic metres | -43% |
| Raw Coal Of Take | 2.71 million tonnes | 3.19 million tonnes | -15.7% |
Investor Takeaway
Investors should be cautious of the decline in coal production and its potential impact on the company's stock price.
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