Although e-auction realizations are typically higher as they are linked to international coal prices, Coal India could not reap the gains from here. FSA volumes increased by almost 13%, whereas realizations increased by around 4%. E-auction premium is expected to come off further, mirroring international coal prices, resulting in muted earnings growth, added the brokerage firm. However, the impact of lower global prices may be offset by higher volumes in case of Coal India. In general, analysts are factoring in about 4-6% volume growth for FY20.

Source: Mint June 02, 2019 16:30 UTC