NLC India (513683) Q4 80/81 earnings summary

Executive summary

• FY1980-81 delivered record lignite, power and urea output; net profit excluding prior-period adjustments rose to Rs. 1,701.74 lakh from Rs. 334.18 lakh.

• Cumulative losses declined from Rs. 5,199.67 lakh to Rs. 3,493.05 lakh; management cautioned that profitability remained fragile and needed stabilization.

Financial highlights

• Sales turnover increased 54.0% to Rs. 11,091.44 lakh from Rs. 7,201.45 lakh; reported net profit excluding prior-period adjustments rose 409.23%.

• Profit including prior-period transactions was Rs. 1,706.62 lakh; value added rose to Rs. 51.60 crore from Rs. 22.90 crore.

• Internal funds generated were Rs. 3,054.01 lakh, up 105.67%; net expenditure on social overheads was Rs. 323.00 lakh.

Outlook and guidance

• First five months' operating progress exceeded the prior year; FY1981-82 profitability was expected to be satisfactory if power prices became remunerative and B&C losses fell.

• Second Thermal Power Station Unit 1 was scheduled for September 1984, Unit 2 for March 1985 and Unit 3 for October 1985.

• Planned expansions included Mine II to 10.5 million tonnes/year and Thermal Station II to 1,470 MW, subject to clearances; feasibility work also covered a third mine and lignite-based fertilizer and methanol.