NLC India Limited (NSE: NLCINDIA, BSE: 513683) Reports Q3 FY2025 Financial Results

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Board Declares Interim Dividend; Approves Strategic Investments

Chennai, India | February 3, 2025

NLC India Limited (NLCIL), a "Navratna" Government of India Enterprise, has announced its unaudited financial results for the quarter and nine months ended December 31, 2024. The Board of Directors, in its meeting on February 3, 2025, approved key financials, declared an interim dividend, and made strategic investment decisions.

Key Financial Highlights (Standalone)

(₹ Crore)
ParticularsQ3 FY25Q2 FY25Q3 FY249M FY259M FY24FY24 (Audited)
Revenue from Operations2,774.682,139.222,515.737,561.037,588.0610,518.64
Total Income2,993.202,485.252,584.788,379.988,018.6111,391.74
EBITDA (Excluding Other Income)489.20282.52319.081,438.781,314.961,834.79
Profit Before Tax (PBT)556.70502.56351.261,789.792,565.892,787.89
Net Profit (PAT)408.40339.39220.971,243.761,673.401,846.58
Earnings Per Share (EPS) (₹)2.952.451.598.9712.0713.32
  • Revenue from operations increased YoY by 10.3% in Q3 FY25.
  • Net profit increased 85% QoQ, primarily driven by higher power generation revenue and regulatory income adjustments.
  • Debt-to-equity ratio improved to 0.43, down from 0.51 in Q3 FY24.

Key Financial Highlights (Consolidated)

(₹ Crore)
ParticularsQ3 FY25Q2 FY25Q3 FY249M FY259M FY24FY24 (Audited)
Revenue from Operations4,411.413,657.273,164.4011,444.739,458.4212,999.03
Total Income4,897.884,370.113,249.3912,908.599,911.9013,946.44
EBITDA (Excluding Other Income)1,618.631,196.72338.163,539.241,374.231,808.76
Profit Before Tax (PBT)829.761,133.41402.042,784.842,716.222,881.64
Net Profit (PAT)696.03982.41254.102,245.141,753.621,867.57
Earnings Per Share (EPS) (₹)5.027.711.8316.1912.6513.47
  • Consolidated revenue saw YoY growth of 39%, fueled by increased power sales and higher tariffs.
  • Regulatory Deferral Adjustments had a significant impact, leading to a net regulatory expense of ₹788.87 crore in Q3 FY25, reducing overall profitability.
  • Improved operational efficiency in power and mining sectors contributed to stronger margins.

Segment-Wise Performance (Standalone)

(₹ Crore)
SegmentQ3 FY25 RevenueQ2 FY25 RevenueQ3 FY24 Revenue9M FY25 Revenue9M FY24 Revenue
Mining2,109.441,492.981,992.155,314.985,716.04
Power Generation1,944.222,071.211,901.346,273.446,040.83
Total4,053.663,564.193,893.4911,588.4211,756.87
  • Mining revenue grew by 5.9% YoY, indicating a rebound in demand for lignite.
  • Power segment grew marginally by 2.3%, driven by better plant load factors and higher tariff adjustments.

Corporate Announcements & Strategic Investments

  1. Interim Dividend Declared
    • Board approved an interim dividend of ₹1.50 per share (15%) for FY 2024-25.
    • Record date: February 7, 2025; Dividend to be paid by March 4, 2025.
  2. New Borrowing Approval
    • Approved term loan in Japanese Yen equivalent to USD 100 million to support expansion and infrastructure projects.
  3. Leadership Changes
    • Resignation: Shri R. Udhayashankar, Company Secretary & Compliance Officer, effective February 10, 2025.
    • Appointment: Shri Prashant Vinay Kaushik as Company Secretary & Compliance Officer, effective February 11, 2025.
  4. Investment in Joint Venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL)
    • NLCIL to invest up to ₹1,110 crore in a JV for 3×125 MW lignite-based thermal power station in Rajasthan.
    • JV structure: 74% stake by NLCIL, 26% by RVUNL.
  5. Investments in Subsidiaries & Renewable Energy
    • ₹12.60 crore invested in Neyveli Uttar Pradesh Power Limited.
    • ₹117 crore invested in NLC India Renewable Limited (NIRL), reinforcing commitment to green energy.

Regulatory & Legal Updates

  • Pending Appeals: NLCIL has filed cases before the Appellate Tribunal for Electricity (APTEL) regarding tariff orders.
  • Regulatory Liabilities: Maintained ₹417.63 crore as regulatory liability due to disputes with TANGEDCO.
  • Land Acquisition Challenges: Neyveli lignite mining faces land availability issues, impacting power generation.

Strategic Outlook

  • Continued expansion in renewables & lignite mining to drive long-term growth.
  • Regulatory decisions pending could significantly impact future earnings.
  • Debt optimization efforts continue, with the company securing funding at competitive rates.
  • Operational efficiencies and strategic JVs expected to enhance revenue stability.

Conclusion

NLC India Limited delivered strong financial performance in Q3 FY25, with robust revenue growth, improved profit margins, and strategic investments in power and renewables. However, regulatory uncertainties and land acquisition hurdles remain key challenges.
Stock Impact: Investors may view the dividend declaration, strategic investments, and consistent profitability positively, supporting medium-to-long-term growth.
 
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