NLC India (513683) Q1 24/25 earnings summary

Executive summary

• Achieved significant operational growth in Q1 FY25, including a 22.17% increase in lignite production and a 35.27% rise in coal production year-over-year.

• Power generation grew by 13.48% year-over-year, with improved plant load and availability factors.

• Total consolidated income for Q1 FY25 was ₹3,640.60 crore, up 6.2% year-over-year, with net profit at ₹566.69 crore, a 37% increase from Q1 FY24.

• Standalone net profit for Q1 FY25 was ₹495.98 crore, up 49.83% year-over-year, with revenue from operations at ₹2,647.13 crore.

• Secured new coal blocks (Machhakata, North Dhadu) and advanced major projects, including Ghatampur and Talabira power plants.

Financial highlights

• Standalone profit after tax rose 49.83% year-over-year to INR 495.98 crore; consolidated PAT up 37.02% to INR 566.69 crore.

• Standalone EBITDA increased 18.80% to INR 1,221.86 crore; consolidated EBITDA up 10.61% to INR 1,444.38 crore.

• Consolidated EBITDA for Q1 FY25 was ₹1,157.11 crore, with an operating margin of 21.49%.

• Standalone EBITDA for Q1 FY25 was ₹1,157.11 crore, with an operating margin of 18.30%.

• Standalone total income grew 7.88% to INR 2,901.53 crore; consolidated total income up 6.19% to INR 3,640.60 crore year-over-year.

Outlook and guidance

• Targeting 10 GW renewable capacity by 2030, with 2 GW solar projects in pipeline and 300 MW to be commissioned in FY25.

• Mining capacity expected to reach 100 million tons by 2030; regulated equity projected to nearly double.

• No new thermal capacity additions planned beyond 2030; all current projects to be completed before then.

• The company will file tariff petitions for 2024-29 and truing up for 2019-24 within statutory timelines.

• Management remains confident of overcoming land acquisition challenges at Neyveli mines.