Coal India share price

Coal India Share Price Rises as Company Declares Interim Dividend Amid Steady Production Gains

Shares of Coal India Ltd (CIL) saw a 0.87% rise, reaching ₹431.87 on the Bombay Stock Exchange (BSE) as the stock turned ex-dividend on November 5, 2024. As India’s largest state-owned coal producer, Coal India recently declared an interim dividend of ₹15.75 per share, based on a face value of ₹10 per share, with the record date set for November 5, 2024. Investors holding shares on this date are eligible to receive the dividend payout.

October Production and Off-Take Performance

In recent regulatory filings, Coal India disclosed provisional data for its October 2024 production and off-take performance. Production witnessed a 2.3% year-over-year increase, reaching 62.5 million tonnes (MT). This steady growth in output highlights the company’s robust operational efforts to meet rising demand in India’s energy sector.

Despite this production increase, Coal India’s off-take—a measure of the coal moved to buyers—experienced a minor 0.5% decline, totaling 61.4 MT compared to the same period last year. This slight dip in off-take reflects short-term logistical challenges but is not expected to impact the company’s longer-term supply commitments.

Dividend Impact on Stock Performance

The interim dividend announcement has spurred investor interest, contributing to the share price gain seen as the stock turns ex-dividend. Dividends remain an attractive component of Coal India’s value proposition, especially for income-focused investors, given the company’s stable performance in a typically high-demand industry.

Conclusion:

Coal India Ltd continues to show resilience in production output while offering strong shareholder returns through dividends. With a steady increase in production and a consistent dividend policy, Coal India maintains its position as a vital player in India’s energy supply chain, attracting both growth and income-focused investors.

FAQs:

1.What is the interim dividend announced by Coal India?

A. Coal India declared an interim dividend of ₹15.75 per share with an ex-dividend date of November 5, 2024.

2.What was Coal India’s share price after turning ex-dividend?

A. Coal India’s share price rose 0.87% to ₹431.87 on the BSE after turning ex-dividend.

3.How did Coal India’s October 2024 production perform?

A. Production increased by 2.3% year-over-year, totaling 62.5 million tonnes.

4.What is the significance of the ex-dividend date?

A. The ex-dividend date determines which shareholders are eligible to receive the dividend.

5.How did Coal India’s off-take performance fare in October 2024?

A. Off-take slightly declined by 0.5%, reaching 61.4 million tonnes.

6.Is Coal India’s dividend policy attractive to investors?

A. Yes, Coal India’s dividends are attractive to income investors, adding value to its stock.

7.What is the face value of Coal India shares?

A. The face value of Coal India shares is ₹10 per share.

8.Why did Coal India’s off-take performance decline in October 2024?

A. The decline reflects minor logistical challenges, though longer-term supply remains stable.

9.How does Coal India’s production growth impact India’s energy sector?

A. Coal India’s production growth helps meet the rising demand in India’s energy sector.

10.Is Coal India expected to maintain its dividend payouts?

A. Given its consistent earnings, Coal India is likely to continue rewarding shareholders with dividends.

Coal India share price

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