During Thursday’s trading session, the shares of a Navratna Government of India Enterprise under the Ministry of Coal surged 4.5 percent to Rs. 254.2 on BSE, after signing two Joint Venture (JV) Agreements with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL).
With a market cap of Rs. 34,527.3 crores, at 11:23 a.m., the shares of NLC India Limited were trading in the green at Rs. 249, up by nearly 2.4 percent, as against its previous closing price of Rs. 243.25.
What’s the news:
According to the latest regulatory filings with the stock exchanges, NLC India Limited has signed two Joint Venture (JV) Agreements with Rajya Vidyut Utpadan Nigam Limited (RVUNL).
The first JV agreement pertains to the setting up of three 125 MW lignite-based thermal power stations in Rajasthan, along with the development to meet the fuel requirement of the station.
The initial paid-up capital will amount to Rs. 5 lakh, contributed by NLC India and RVUNL in a ratio of 74:26. The Joint Venture Company (JVC) will issue equity shares at a par/face value of Rs. 10 each per share.
The second agreement involves NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited, which has partnered with RVUNL to develop 2000 MW of renewable power projects in Rajasthan.
Previous News:
On 28th August, NLC India Limited entered into a Power Usage Agreement in Hyderabad with Telangana State DISCOMs for 200 MW of solar power, offered at a competitive and affordable price under the CPSU scheme for a duration of 25 years.
NLCIL’s solar project is expected to generate around 1,300 crore units of green power and reduce carbon emissions by 90 lakh tons over its lifetime.
The project will be developed with state-of-the-art equipment, including single-axis trackers and domestically manufactured high-efficiency modules, with the goal of maximising generation under the Atma Nirbhar Bharat (Make in India) initiative. The project is set to be commissioned by June 2025.
Financials:
The company reported a marginal growth in revenue from operations,
experiencing a year-on-year increase of nearly 2 percent, rising from Rs. 3,316 crores in Q1 FY24 to Rs. 3,376 crores in Q1 FY25.
During the same period, the company’s net profit increased from Rs. 414 crores to Rs. 567 crores, representing a growth of around 37 percent YoY.
Future Plans & Capex:
NLC India plans to increase its renewable energy capacity significantly, aiming to expand from the current 1.4 GW to a total of 10.1 GW by 2030, which involves adding 8.6 GW.
The company is also working on a pilot project to generate hydrogen using a 4 MW solar input for the electrolyzer.
Additionally, the PSU company has projected a capital expenditure of Rs. 70,985 crore up to 2030, excluding the project cost of TTPS II SE, which stands at Rs. 11,189 crores.
Financial Ratios:
In terms of key financial metrics, NLC India reported a Return on Equity (RoE) of 6.79 percent and a return on capital employed (RoCE) of 6.54 percent for the period spanning FY23-24. Further, the net profit margin stood at 14.36 percent during the same timeframe.
Stock Performance:
The stock has delivered multibagger returns of nearly 106.4 percent in one year, and around 8.6 percent of positive returns in the last six months. So far in 2024, the shares of NLC India have given positive returns of about 1 percent.
About the company:
NLC India Limited is engaged in the business of mining of lignite, coal and generation of power by using lignite as well as Renewable Energy Sources and consultancy.
Written by Shivani Singh
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