NLC India (513683) Q4 82/83 earnings summary

Executive summary

• FY82/83 record profit after prior-period expenses was Rs 47.44 crore vs Rs 37.92 crore; sales turnover rose 9.44% YoY to Rs 143.42 crore.

• Higher capacity utilisation, efficiency and selling prices supported results; the thermal station won the national productivity award for 500 MW-and-above plants.

Financial highlights

• Profit before interest, depreciation and amortisation was Rs 80.37 crore; profit excluding interest was Rs 76.47 crore, up 34.98% YoY.

• Profit before prior-period adjustments was Rs 54.69 crore vs Rs 38.07 crore; prior-period net expense of Rs 7.24 crore brought reported profit to Rs 47.44 crore.

• Total turnover including internally consumed products was Rs 255.60 crore; value added was Rs 102.75 crore vs Rs 79.80 crore.

• Internal funds generated were Rs 76.47 crore vs Rs 56.65 crore; total income was Rs 164.87 crore and profit after prior-period expenses was Rs 47.44 crore.

Outlook and guidance

• Government sanctioned schemes costing Rs 1815 crore, including Rs 1061 crore for Mine II expansion to 10.5 MT, Thermal Station II expansion from 630 MW to 1470 MW, and 400 kV lines.

• First Thermal Station II unit commissioning was revised to June 1985 by Transelektro; progress made the schedule uncertain, with the boiler drum lift not expected before November 1983.

• Mine I expansion, Mine III, a 1500 MW third thermal station, further power units and fertilizer/methanol or coke projects were under feasibility review for future plans.

• Delayed TNEB payments constrained internal funds and threatened timely orders for the Thermal Station II expansion.