Coal India reported 64% rise in net profit for the first quarter, as it gained from higher prices and supply of dry fuel, The WallStreet Journal reported.

The state-run company’s net profit for April-June surged to Rs 41.44 billion compared with Rs25.26 billion a year earlier. Sales rose 27% to Rs 144.99 billion as against Rs 114.36 billion reported earlier.

Coal India has raised prices in Feburary by up to 30% for some industries to offset higher costs amid sluggish production due to delays in getting environmental clearances for coal mining in India.

“Though rains have hampered our output plans in the current quarter, we are on track for meeting the full-year targer,” said chairman  Nirmal Chandra Jha. Coal India plans to produce Rs 452 million tonne of coal this fiscal year.

The production of Coal India rose 1.2% to 96.3 million tonne in April-June quarter, while supplies to user industries including power utilities rose 5% to 106.25 million tonne.  “Improved wagon availability and supplies to customers helped the company to bring down the coal stocks at pitheads to about 52 million tonne,” said chairman Nirmal Chandra. 

The company’s mines account for more than 80% of India’s total coal production, and lower output at the company could lead the South Asian country to increase imports. 

According to Bhavesh Chauhan, an analyst  at Mumbai-based Angel Broking Ltd, said, they will now watch out for Coal India’s planned wage revision and the impact on its performance from the government’s proposal that would require coal miners to share 26% of their profits with the people displaced due to mining activities.

The wage revision for Coal India is about 380,000 employees is due from July. Coal India is also scouting for coal assets overseas to bridge the local shortfall of 142 million tonne for this fiscal year and is awaiting certain government clearances for the same.