The shares of the public sector company gained up to 11 percent after the company’s net profit and revenue increased by 174 percent and 39 percent YoY, respectively, in Q3FY25.
With a market capitalization of Rs 32,440.36 crore, the shares of NLC India Ltd were trading at Rs 233.95 per share, increasing around 10 percent as compared to the previous closing price of Rs 211.25 apiece.
Reason for Rise
The shares of the company have seen positive movement after NLC India Ltd reported positive results in Q3FY25, revenue increased by 39 percent on a quarter-on-quarter basis from Rs. 3,164 crore in Q2FY25 to Rs. 4,411 crore in Q3FY25. Further, revenue zoomed by 21 percent year on year, from Rs 3,657 crore in Q3FY24 to Rs. 4,411 crore in Q3FY25.
The company’s net profit decreased by 29 percent on a quarter-on-quarter basis, from Rs. 982 crore in Q2FY25 to Rs. 696 crore in Q3FY25. Further, net profit magnified significantly by 174 percent year on year from Rs 254 crore in Q3FY24 to Rs. 696 crore in Q3FY25.
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.
Financial analysis
Examining the company’s financial performance, revenue magnified by 22 percent from Rs 2,978 crore in Q4FY23 to Rs 3,657 crore in Q4FY24, during the same time frame, net profit shrunk by 10 percent from Rs 1,086 crore to Rs 982 crore.
The company reported a 15% YoY increase in lignite production to 122 LT, a 30% rise in coal production to 59.61 LT, and gross power generation of 14,192 MU (+9%), including 1,136 MU from renewables, with a 12% higher PAF at 79.19%.
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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, a 200 MW solar power agreement with Telangana, and top ratings for five mines in FY23.
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 ₹1.25 Lakh Crore capex, including ₹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 ₹27,213 crore Talabira project by 2029–2030, the ₹2,243 crore Pachwara South coal block (FY 2026), and multiple renewable projects (FY 2025–FY 2027).
Management Insight
The company resolved lignite shortages in January 2024, meeting production needs. Management targets 16 MMT coal output this fiscal, with the potential to exceed it. Despite CERC challenges, long-term lignite availability is secured. A balanced coal, renewable, and lignite strategy aligns with investor interests.
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. The company’s sectors include mining and power generation.
Written by:- Abhishek Singh
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