The shares of the public sector company gained up 3.4 percent after the company’s subsidiary signed a Joint Venture Agreement to develop the Solar Power Project in Assam.
With a market capitalization of Rs 32,211.57 crore, the shares of NLC India Ltd were trading at Rs 232.95 per share, decreasing around 3.02 percent as compared to the previous closing price of Rs 240.20 apiece.
Reason for Rise
According to the company filing, NLC India Renewables Limited (NIRL), a wholly-owned subsidiary of NLC India Limited signed a Joint Venture Agreement to develop the Solar Power Project in Assam. This Joint Venture (JV) aimed at developing 1000 MW of green energy projects in Assam.
Moreover, the JVC will be established with an equity shareholding of 51 % by NIRL and 49% by APDCL. NIRL will bring its expertise in renewable energy project development. APDCL will facilitate land acquisition, regulatory approvals, and power evacuation infrastructure. Power Purchase Agreements (PP As) will be signed with Assam DISCOMs for the sale of 100% of the generated power for 25 years.
Furthermore, the Joint Venture aims to meet Assam’s energy needs by developing renewable energy projects, ensuring affordable, reliable power, and enhancing long-term energy security. Aligned with India’s renewable energy goals, it supports climate action and sustainable development by boosting clean energy in the state.
Financial analysis
Examining the company’s financial performance, revenue magnified by 22 percent from Rs 2,978 crore in Q4FY23 to Rs 3,657 crore in Q4FY24, during the same time frame, net profit shrunk by 10 percent from Rs 1,086 crore to Rs 982 crore.
The company reported a 15% YoY increase in lignite production to 122 LT, a 30% rise in coal production to 59.61 LT, and gross power generation of 14,192 MU (+9%), including 1,136 MU from renewables, with a 12% higher PAF at 79.19%.
Operational Highlights
The company achieved key milestones, including revised vesting for Machhakata Coal Block, clearances for Pachwara South, JV agreements with RVUNL for 3×125 MW thermal and 2 GW renewable projects, a 200 MW solar power agreement with Telangana, and top ratings for five mines in FY23.
Future Outlook
The company plans to increase mining capacity from 50.1 MT to 104.4 MT, thermal capacity from 4,640 MW to 10,020 MW, and renewables from 1,430 MW to 10,110 MW by 2030, with a ₹1.25 Lakh Crore capex, including ₹15,000 Crore for mining.
Also read….
Upcoming project
The company’s upcoming projects include the Ghatampur thermal power plant (3×660 MW) by Nov 2024–Mar 2025, the ₹27,213 crore Talabira project by 2029–2030, the ₹2,243 crore Pachwara South coal block (FY 2026), and multiple renewable projects (FY 2025–FY 2027).
Management Insight
The company resolved lignite shortages in January 2024, meeting production needs. Management targets 16 MMT coal output this fiscal, with the potential to exceed it. Despite CERC challenges, long-term lignite availability is secured. A balanced coal, renewable, and lignite strategy aligns with investor interests.
Company Snapshot
NLC India Limited is an India-based firm that mines lignite and coal generates power utilizing lignite and renewable energy sources, and provides consultancy. The company’s sectors include mining and power generation.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
