NLC India (513683) Q4 84/85 earnings summary

Executive summary

• FY 1984-85 set production records for overburden removal, lignite, power generation and export, and coke; net profit after prior-period adjustments was Rs. 57.69 crore versus Rs. 62.98 crore in FY 1983-84.

• Profit declined despite higher output, mainly because the TNEB power tariff agreement effective 1 April 1984 remained unsettled; provisional payments used the prior-year tariff.

• Cumulative surplus reached Rs. 171.10 crore; B. & C. Plant returned to profit for the first time, earning Rs. 0.67 crore.

Financial highlights

• Net profit after prior-period adjustments was Rs. 57.69 crore, down from Rs. 62.98 crore; profit before prior-period adjustment was Rs. 58.97 crore.

• Sales turnover was Rs. 170.73 crore versus Rs. 166.99 crore, up 2.24%; sales including Urea Differential Retention Price were Rs. 186.16 crore versus Rs. 185.61 crore.

• Value added increased to Rs. 130.44 crore from Rs. 128.87 crore; value added per employee rose to Rs. 72,600 from Rs. 71,508.

• Capital expenditure was Rs. 183.93 crore; Rs. 168.67 crore was allocated to Second Thermal Station, Second Mine, 400 kV lines and related expansion schemes.

Outlook and guidance

• Unit III of Second Thermal Station was targeted for commissioning by March 1986, with boiler-contract delays and slippage risks under active review with contractors and lenders.

• Letters of intent for Second Mine expansion equipment and Second Thermal Station Stage II major equipment were expected by November 1985, subject to Government and KFW clearance.

• A staged renovation programme of about Rs. 50 crore was planned for Thermal Station I, subject to Government approval.

• Feasibility proposals covered Mine I expansion, a third lignite mine and a third 1,500 MW thermal station; modifications requested by Government were in progress.