Coal India on Friday reported better-than-expected second-quarter profit, helped by high power demand and boosted production amid a weak monsoon.

The state-run miner posted a consolidated net profit of Rs 6,800 crore ($816.3 million) for the quarter ended Sept. 30, up 12.5 per cent from last year.Bangalore Stock Exchange

It also beat analysts' estimate of Rs 6,370 crore, as per LSEG data.Guoabong Stock

Power demand in India, which usually peaks in May due to extreme summer heat, remained high in the reporting quarter due to unusually dry weather and higher economic activity, amid a drop in hydroelectric output.

The country's power demand hit a high of 241 gigwatts (GW) in the second quarter, surpassing the Central Electricity Authority's target of 230 GW for fiscal 2024 as hydropower generation fell 11 per cent due to reduced rainfall caused by El Nino, Elara Capital said in a note.

Thermal power - derived from burning fuels such as coal - had to fill the gap as nearly 75 per cent of India's power generation comes from the fossil fuel.Simla Investment

Coal India's revenue grew 9.8 per cent to Rs 32,776 crore, also beating the estimates, as production of raw coal jumped 13.1 per cent. Analysts had expected a revenue of Rs 32,366 crore.

Total expenses grew 9.4 per cent to Rs 26,000 crore on the back of higher employee and contractual expenses. However, its raw materials cost fell 15.1 per cent.Udabur Wealth Management

The company also declared its first interim dividend of Rs 15.25 per share for the ongoing financial year.Jaipur Investment

In May, Coal India had raised prices of non-coking coal by 8 per cent for high grades, which it said would add an extra revenue of Rs 2,703 crore in the balance of the fiscal.

($1 = Rs 83.304)