The shares of the public sector company gained up to 3 percent after the company bagged a prestigious Letter of Award (LoA) for a 200 MW Wind Power Project.
Price movement
With a market capitalization of Rs 27,767.40 crore, the shares of NLC India Ltd were trading at Rs 200.25 per share, decreasing around 3 percent as compared to the previous closing price of Rs 206.45 apiece.
Reason for Rise
NLC India Ltd bagged a prestigious Letter of Award (LoA) for a 200 MW Wind Power Project from SJVN Limited at a tariff of Rs 3.74 per kWh. The project is set to generate 526 (MU) of clean green power each year, offsetting an equivalent amount of greenhouse gas emissions.
Furthermore, this milestone reinforces NLCIL’s growing presence in India’s renewable energy sector and aligns with the company’s vision of achieving 10 GW renewable energy capacity by 2030. It is also to be noted that NLCIL’s Renewable energy journey started with its 51 MW Wind project during the year 2013.
Additionally, NLCIL’s latest win expands its wind energy portfolio beyond 300 MW, reinforcing India’s push for non-fossil fuel power. The project aligns with the National Green Energy Policy and supports the government’s goal of achieving 500 GW of non-fossil fuel capacity by 2030.
Recent Agreement
According to the company filing, NLC India Renewables Limited (NIRL), a wholly-owned subsidiary of NLC India Limited, signed a Joint Venture Agreement to develop the Solar Power Project in Assam. This joint venture (JV) is aimed at producing 1000 MW of green energy projects in Assam.
Also read: Cement stock jumps after announcing ₹3,520 Cr capacity expansion plan in Maharashtra & Karnataka
Financial analysis
Examining the company’s financial performance, revenue magnified by 39 percent from Rs 3,164 crore in Q3FY24 to Rs 4,411 crore in Q3FY25, during the same time frame, net profit magnified by 174 percent from Rs 254 crore to Rs 696 crore.
Operational Highlights
The company achieved key milestones, including revised vesting for Machhakata Coal Block, clearances for Pachwara South, JV agreements with RVUNL for 3×125 MW thermal and 2 GW renewable projects, and a 200 MW solar power agreement with Telangana.
Future Outlook
The company plans to increase mining capacity from 50.1 MT to 104.4 MT, thermal capacity from 4,640 MW to 10,020 MW, and renewables from 1,430 MW to 10,110 MW by 2030, with a Rs 1.25 Lakh Crore capex, including Rs 15,000 Crore for mining.
Upcoming project
The company’s upcoming projects include the Ghatampur thermal power plant (3×660 MW) by Nov 2024–Mar 2025, the Rs 27,213 crore Talabira project by 2029–2030, the Rs 2,243 crore Pachwara South coal block (FY 2026), and multiple renewable projects (FY 2025–FY 2027).
Company Snapshot
NLC India Limited is an India-based firm that mines lignite and coal, generates power utilizing lignite and renewable energy sources, and provides consultancy related to it. The company’s sectors include mining and power generation.
Written by Abhishek Singh
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