NLC India (513683) Q4 81/82 earnings summary

Executive summary

• FY81/82 net profit reached a record Rs 3,807.06 lakh, excluding prior-period adjustments, wiping out accumulated losses and leaving a Rs 298.99 lakh surplus.

• Lignite extraction, power generation and exports reached record levels; higher capacity utilisation and selling prices supported earnings growth.

Financial highlights

• Sales turnover rose 18.15% to Rs 13,104.89 lakh; net profit excluding prior-period adjustments increased 123.72% to Rs 3,807.06 lakh.

• Profit before interest, depreciation and amortisation was Rs 6,248.91 lakh, up 66.77%; internal fund generation was Rs 5,665.46 lakh, up 85.51%.

• Sales rose 8.81% for power and 12.85% for urea; Leco and fines sales rose 169.79%, led by industrial demand.

• Value added increased to Rs 79.80 crore from Rs 51.60 crore; profit improvement reflected higher utilisation and selling prices, partly offset by higher depreciation.

Outlook and guidance

• FY82/83 was framed as a consolidation year; first-half growth was maintained, with efforts focused on sustaining output and strengthening operational weak points.

• Productivity targets called for an average 5% improvement over FY81/82 in profitability, capacity utilisation, production and output per manshift.

• Mine II and Thermal Power Station II projects, estimated at Rs 737 crore, were under construction; the first 210 MW unit was scheduled for commissioning in September 1984.

• Second Mine expansion to 10.5 million tonnes/year and Second Thermal Power Station expansion to 1,470 MW were under Government consideration.