NLC India (513683) Q4 83/84 earnings summary

Executive summary

• Record net profit was Rs. 62.97 crore in FY1983-84, up 32.73% YoY including prior-period adjustments; higher capacity utilisation and productivity were key drivers.

• Value added rose 15% to Rs. 128.87 crore; value added per employee reached Rs. 67,208 versus Rs. 59,016 in FY1982-83.

Financial highlights

• Sales were Rs. 166.99 crore, up 16.43% YoY; including internally consumed products, turnover was Rs. 285.19 crore versus Rs. 255.60 crore.

• Profit before prior-period adjustments was Rs. 63.27 crore, up 15.69%; net profit after adjustments was Rs. 62.97 crore versus Rs. 47.44 crore.

• Net internal resources after loan repayments increased 42.9% to Rs. 85.91 crore; gross internal resources rose 13% to Rs. 88.16 crore.

• Taxes and duties paid to Central and State exchequers rose 91% to Rs. 56.11 crore.

Outlook and guidance

• Feasibility reports for Mine I expansion from 6.5 to 10.5 Mtpa, Mine III at 11 Mtpa and Thermal Station III at 3 x 500 MW were submitted to the Government.

• Long-range plans target lignite output of 32 Mtpa and power capacity of 3,700 MW by 2000; authorised share capital may need to rise to Rs. 1,500 crore for expansion funding.

• A new power-sale agreement with TNEB remained under discussion after the previous agreement expired on 31 March 1984; a two-year extension was requested.

• Mini-computer systems were scheduled for installation in Q1 1985, with operations planned for FY1985-86.