The shares of this midcap company jumped upto 4 percent in Thursday’s trading session after signing a power usage pact to supply 200 MW Green Power. In one year, the stock has delivered more than a 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 38,327 crores, the shares of NLC India Ltd started Thursday’s trading session on a higher note at Rs. 280 compared to its previous close of Rs. 276.30. During the trading session, the shares hit a high of Rs. 288, gaining around 4 percent and are currently trading at Rs. 277 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had signed a Power Usage Agreement at Hyderabad, with Telangana State DISCOMs for 200 MW Solar Power at a competitive and affordable price under the CPSU scheme for 25 years.
The NLC India Solar Project is anticipated to generate around 1,300 crore units of green energy and cut carbon emissions by 90 lakh tonnes over its lifetime.
The project, employing advanced technology such as single-axis trackers and high-efficiency domestic modules, is engineered to optimize power generation in line with the Atma Nirbhar Bharat (Make in India) initiative. It is set to be commissioned by June 2025.
NLCIL has been supplying over 234 MW of thermal power to Telangana for more than three decades, and this partnership in renewables signifies a long-term commitment to a sustainable future for both parties.
The project is expected to deliver significant benefits in terms of cost savings, energy security, and environmental sustainability for Telangana.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 5 percent from Rs. 3,541 crores during the March quarter to Rs. 3,376 crores in the June quarter. Contrastingly, the net profits zoomed by 397 percent from Rs. 114 crores to Rs. 567 crores during the same period.
Capex:
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 is Rs. 11,189 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.21 percent and a return on capital employed (RoCE) of 6.04 percent for the period spanning FY23-24. Further, the net profit margin stood at 14.36 percent during the same timeframe.
Company Profile:
NLC India Limited (NLC) (formerly Neyveli Lignite Corporation Limited) is a Navratna Government corporation in the fossil fuel mining sector in India and thermal power generation under the ownership of the Ministry of Coal, Government of India.
The company is engaged in the business of mining of lignite and generation of power by using lignite as well as Renewable Energy Sources.
Written By Vaibhav Patil
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