A prominent Navratna mining stock surged 9 percent after the company reported an impressive 311 percent year-on-year increase in net profit for the latest quarter. The sharp rise in earnings reflects strong operational performance and favorable market conditions, driving renewed investor interest and boosting the stock’s upward momentum.
During Tuesday’s trading session, the shares of NLC India Ltd reached an intraday high of Rs.257.70 per share, rising 9 percent from its previous close of Rs.236.43 per share. The shares have retreated from the peak and currently trading at Rs.244.91 per share. Over the past five years, the stock has delivered over 500 percent returns.
Financial Performance
NLC India Ltd saw a notable rise driven by strong growth in both net profit and revenue, as highlighted in its latest financial results. In Q4 FY25, NLC India Ltd reported revenue of Rs.3,971.90 crore, reflecting a slight decline of 1.55 percent compared to Rs.4,034.53 crore in Q4 FY24. However, on a sequential basis, revenue fell by 18.95 percent from Rs.4,900.78 crore in Q3 FY25, indicating some moderation in quarterly performance.
The company’s net profit for the quarter stood at Rs.468.46 crore, marking a substantial increase of 311.16 percent from Rs.113.95 crore in Q4 FY24. However, compared to Rs.696.03 crore in Q3 FY25, net profit declined by 32.69 percent.
For the full year FY25, NLC India posted total revenue of Rs.16,889.45 crore, representing a growth of 21.06 percent over Rs.13,948.47 crore in FY24. Annual net profit rose to Rs.2,713.61 crore, reflecting a healthy increase of 45.27 percent from Rs.1,867.57 crore in the previous fiscal year.
Joint Venture and Dividend
The company has approved the incorporation of a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), with equity participation in the ratio of 74:26. The joint venture aims to establish and operate a 3 x 125 MW lignite-based thermal power station and develop lignite mines to meet the plant’s fuel requirements, subject to compliance with DIPAM guidelines and necessary approvals from the Ministry of Coal and other relevant authorities.
Additionally, the Board of Directors has recommended a final dividend of 15.00 percent, equivalent to Rs.1.50 per equity share, for the financial year 2024–25. This is subject to the Comptroller and Auditor General (C&AG) audit and shareholders’ approval at the upcoming Annual General Meeting.
Business Highlights
NLC India Ltd achieved a key milestone by commencing commercial operations of the 660 MW Unit I at the Ghatampur Thermal Power Project, marking its entry into supercritical thermal operations. It also secured the Machchakata and New Patrapara South coal blocks, with agreements signed and vesting orders issued by the Ministry of Coal.
The company renewed its coal supply agreement with NTPC and signed a new pact with Damodar Valley Corporation for supply from the Talabira II and III mines. It also introduced a digital logistics system for improved coal dispatch monitoring. In the renewable space, NLC India Ltd won a 200 MW wind project from SJVN Limited and launched NIRL Assam Renewables Ltd for developing 1000 MW of green energy in Assam.
Capacity Expansion
NLC India Ltd delivered a strong operational performance in FY 2024–25, achieving record-breaking production milestones. The company reported lignite production of 240.60 lakh tonnes, marking a 1.60 percent increase over the previous year, and registered its highest-ever coal production of 172.02 lakh tonnes, a sharp growth of 36.08 percent from FY 2023–24. Additionally, gross power generation stood at 27,865.58 million units (MU), reflecting a 2.80 percent rise, including 2,094.33 MU from renewable sources.
The company also achieved its highest-ever combined lignite and coal production of 41 million tonnes since inception. NLCIL Group reported its highest-ever capital expenditure, crossing Rs.7,700 crore for the year. Notably, the TPS-I Expansion plant ranked first in cumulative Plant Load Factor (PLF) among lignite-fired thermal power stations as of February 2025, further underscoring the company’s operational efficiency.
Written by – Siddesh S Raskar
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