NLC India (513683) Q4 87/88 earnings summary

Executive summary

• Recorded a 12th consecutive year of profit and the highest annual profit to date; profit after prior-period adjustments was Rs. 75.04 crore.

• Gross power generation reached 6,465 MU and lignite output crossed 10 million tonnes for the first time.

• Completed Stage I of the Second Thermal Power Station 10 weeks ahead of the approved revised schedule.

Financial highlights

• Sales revenue rose to Rs. 326.08 crore from Rs. 254.18 crore; total income was Rs. 344.36 crore versus Rs. 266.73 crore.

• Profit before extraordinary items was Rs. 85.51 crore versus Rs. 67.21 crore; after Rs. 4.34 crore of extraordinary items and Rs. 6.13 crore of net prior-period adjustments, profit was Rs. 75.04 crore.

• Interest expense increased to Rs. 21.23 crore from Rs. 8.05 crore; depreciation and amortisation rose to Rs. 57.95 crore from Rs. 42.65 crore.

• Capital expenditure was Rs. 349 crore versus Rs. 262 crore, excluding replacement expenditure in the prior-year comparison.

Outlook and guidance

• Management anticipated higher profits in the current year.

• Second Mine and Second Thermal Power Station expansion work was progressing as scheduled; expansion of the first mine and power station and development of a third mine and station had bright prospects.

• A 12% increase in coke output over the prior year was targeted for the current year.

• Further energy conservation was targeted after reported savings of Rs. 16.41 crore at Thermal Power Station II and Rs. 1.38 crore in other units and departments.