NLC India (513683) Q4 88/89 earnings summary

Executive summary

• FY88/89 delivered record profit for the 13th consecutive year; profit after tax was Rs.77.32 crore, up from Rs.75.04 crore, while power exports grew 18.8% YoY.

• Lignite production reached 114.05 lakh tonnes; gross power generation was 7,580 MU, and sales/service turnover rose to Rs.424.12 crore from Rs.326.07 crore.

Financial highlights

• Sales revenue was Rs.424.12 crore; other income Rs.17.04 crore. Profit before tax was Rs.78.32 crore versus Rs.75.04 crore; profit after tax was Rs.77.32 crore versus Rs.75.04 crore.

• Profit before extraordinary items was Rs.113.36 crore; net extraordinary items of Rs.33.97 crore and prior-period adjustments of Rs.1.07 crore preceded tax of Rs.1 crore.

• Sales/service turnover rose across power, urea, coke and tar products; power sales were Rs.301.45 crore versus Rs.234.61 crore and urea sales Rs.58.82 crore versus Rs.46.08 crore.

• Internal resources generated were Rs.177.88 crore versus Rs.128.75 crore; capital expenditure was Rs.662.42 crore versus Rs.415.06 crore.

Outlook and guidance

• Second Mine Stage II and Second Thermal Power Station Stage II construction continued; commissioning was expected by target dates despite land-acquisition hurdles.

• FY89/90 plans included Rs.400 crore of private-placement bonds to fund Second Mine Stage II, Second Thermal Power Station Stage II and 430 kV transmission lines Stage II.

• Mine I expansion, new generation units, Mine III and a 1,500 MW thermal station remained under government consideration; Barsingsar plans included a 1.7 MT mine and 240 MW station.