CUDDALORE: NLC India Ltd on Friday reported a 16% drop in second-quarter profit to Rs 440.12 crore from Rs 525.82 crore last year.
NLC’s profit took a hit as the distribution companies (Discoms) surrendered 722.27 million units of power during the first half of the present fiscal, compared to 115.58 million units surrendered during the corresponding period last year. Moreover, the company, during the second quarter of the current fiscal, disbursed Rs 52.66 crore towards one-time voluntarily retirement compensation, thereby further affecting its profitability.
The net profit of NLC India Ltd for the first half of the current financial year (2016-17) has come down by 26% or Rs 290 crore, compared to the corresponding period last year. The company’s net profit during the first six months of the current fiscal stood at Rs 793 crore as against Rs 1,083.68 crore during the corresponding period last year.
However, NLC saw an increase in total sales revenue, lignite production and power generation during the current fiscal. The total sales revenue of the company for the first half year of 2016-17 stood at Rs 3,938.51 crore as compared to Rs 3,564.09 crore last year, registering a growth of 10.5%. The total sales revenue of the company for the second quarter stood at Rs 2,056.67 crore as compared to Rs 1,718.19 crore in the same quarter last year, registering a growth of 19.7%.
Lignite production in the second quarter stood at 69.27 lakh tonne as against 60.21 lakh tonne last year, registering a growth of 15%. Similarly the power generation in the current quarter was 5254.83 million units as against 4963.47 million units during the same period last year.
The company operates three opencast lignite mines at Neyveli and one at Barsingsar, Rajasthan, with a total capacity of 30.6 million tonne per annum (MTPA) and four thermal power stations at Neyveli, one at Barsingsar (250 MW) and one at Tuticorin (1,000MW) along with wind power (51MW) and solar power (10MW). NLC’s overall installed power generation capacity is 4,301 MW. Power generated by the NLC is shared by Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Rajasthan and the Union territory of Puducherry.