NLC India Ltd Share Price – NSE  /  BSE

Power Generation & Distribution, Small Cap

The Company has achieved 22.12% growth in Lignite production during Q1 of FY 2024-25 i.e. 61.72 LT produced when compared to Q1 of FY 2023-24 i.e. 50.54 LT.

The Company has raised its Coal production to 28.46 LT which is 5.27% growth during Ql of FY 2024-25 when compared to Q1 of FY 2023-24 i.e. 21.04 LT.

The Company has raised its Lignite and Coal production to 90.18 LT which is .98% growth during Q1 of FY 2024-25 when compared to Qlof FY 2023-24 i.e. 71.58 LT.

The Company's Gross Power Generation increased to 7,553.62 MU which is il.0.38% more than Q1 of FY 2023-24 i.e. 6,843.09 MU. This includes Renewable Power Generation of 546.63 MU as against 539.28 MU of Q1 of FY 2023-24.

Market capitalisation increased by 5.28% i.e. from Rs.228.10 price per share to Rs. 240.15 per share.

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CRISIL stated that the rating continues to reflect the strong business risk profile of NLCIL, backed by high operating efficiency, regulated cash flow and captive fuel availability for its power plants.

The rating also factors in the company’s strategic importance to the Government of India and healthy financial risk profile because of comfortable capital structure and liquidity.

These strengths are partially offset by exposure to risks related to counterparty and implementation of the ongoing capacity expansion projects.

NLC operates lignite and coal mines and thermal power stations in Neyveli and Tuticorin (NTPL) in Tamil Nadu and Barsingsar, Rajasthan and Odisha. It sells power to the state utilities of Tamil Nadu, Telangana, Rajasthan, Andhra Pradesh, Kerala, Karnataka and the Union Territory of Puducherry. It was awarded the Navratna status in fiscal 2011.

On a consolidated basis, for fiscal 2024, profit after tax (PAT) was Rs 1,868 crore on revenue from operations of Rs 12,999 as per the abridged financial statement of the company.

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NLC India announced that CRISIL has reaffirmed the credit ratings of the company as under:

Bank loan facilities (Rs 6542.80 crore) - CRISIL AAA/ Stable
Non convertible debentures (Rs 3000 crore) - CRISIL AAA/ Stable

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Additionally, the company’s board approved to seek external assistance from Multilateral Development Bank (MDBs) through Department of Economic Affairs (DEA) for upcoming renewable power projects.

Further, the firm has also announced to issue corporate guarantee or letter of comfort to NLC India Green Energy, a wholly owned subsidiary and Neyveli Uttar Pradesh Power, material subsidiary of the company based on the requirement.

Meanwhile, the company has received in-principle approval to invest up to Rs 994.50 crore, in one or more tranches in NLC India Renewables, a wholly owned subsidiary of the company by way of subscribing the equity shares at face value subject to the necessary approvals of DIPAM/MoC, etc.

NLC India is a 'Navratna' government of India company in the fossil fuel mining sector in India and thermal power generation. As of 31 March 2024, the Government of India held 79.20% stake in the company.

The company reported that its consolidated net profit declined 86.23% to Rs 114.23 crore on 31.04% decrease in revenue from operations to Rs 3,540.61 crore in Q4 FY24 over Q4 FY23.

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