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NLC India rallies after Q1 PAT jumps 21% to Rs 343 cr

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Capital Market
Last Updated : Sep 07 2020 | 12:16 PM IST

NLC India advanced 3.16% to Rs 53.90 after consolidated net profit jumped 21% to Rs 343.41 crore on 29.6% increase in net sales to Rs 2,699 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) surged 44.1% to Rs 531.55 crore in Q1 June 2020 over Q1 June 2019. During the quarter, the group has recognised as an exceptional item, the one-time rebate of Rs 85.43 crore to DISCOMs on account of COVID-19 pandemic based on guidelines issued by Ministry of Power, Government of India. The Q1 result was declared post trading hours on Friday, 4 September 2020.

Consolidated EBIDTA (excluding exceptional item) for the quarter ended 30 June 2020 was at Rs 1,380.18 crore as against Rs 883.99 crore in the corresponding period of the previous year, registering a growth of 56.13% YoY (year-on-year).

The construction and commissioning of Unit-II (500 MW) of Neyveli New Thermal Power Plant (NNTPS) (2 X 500 MW) is getting delayed due to COVID-19 pandemic and restriction on movement of migrant workers. Further commissioning of Andaman Solar 20 MW has also been delayed due the various restrictions imposed on account of COVID-19. The coal production target of Talabira - II & III coal mines for 2020-21 has also been reduced to 0.937 MT from 1.25 MT due to COVID-19.

However, based on Ministry of Power Guideline issued on 15 May 2020, the group has created provision of Rs 85.43 crore towards one-time rebate and shown under exceptional items in Q1 2020-21. Apart from rebate surcharge for the said period has also been considered at the reduced rate as per directives issued by CERC in this regard. The impact of COVID 19 in the subsequent periods are being monitored. The construction and commissioning of Neyveli Uttar Pradesh Power (NUPPL) has also been delayed due to restriction on movement of migrant workers.

NLC India, a Navratna CPSE and Coal India, a Maharatna CPSE, both under the administrative control of Ministry of Coal, executed a joint venture agreement on 3 July 2020 for formation of a joint venture company to develop solar and thermal power assets to the tune of 5,000 MW on pan India basis.

As of 30 June 2020, the Government of India held 79.20% stake in the company.

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First Published: Sep 07 2020 | 10:54 AM IST

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