NLC India (513683) Q3 24/25 earnings summary

Executive summary

• Achieved all-time highest nine-month revenue from operations of INR 11,445 crore, up 21% year-over-year, and Q3 FY25 revenue of ₹4,411.41 crore, up from ₹3,164.40 crore in Q3 FY24.

• Profit after tax for nine months was INR 2,245 crore, a 28% increase year-over-year; Q3 FY25 net profit was ₹696.03 crore, up from ₹254.10 crore in Q3 FY24.

• Interim dividend of INR 1.5 per share approved for FY 2024-25.

• Installed power generation capacity increased to 6,731 MW with the commissioning of Ghatampur Thermal Power Station unit 1.

• Coal and lignite production reached record highs, with coal output up nearly 40% and total gross power generation up 4.71% year-over-year.

Financial highlights

• Under-recovery for nine months reduced to INR 517 crore from INR 725 crore year-over-year; standalone under-recovery at INR 500 crore.

• Regulatory deferral income had an adverse impact of INR 789 crore on quarterly PAT, resulting in normalized PAT of INR 696 crore for the quarter.

• One-time positive impact of INR 650 crore in NTPL subsidiary due to a CERC order in the quarter.

• Consolidated EBITDA margin for Q3 FY25 was 16.01% and net profit margin at 14.37%.

• Earnings per share (consolidated, after regulatory adjustments) for Q3 FY25 was ₹5.02, up from ₹1.83 in Q3 FY24.

Outlook and guidance

• Targeting renewable capacity expansion from 1.4 GW to 10 GW by 2030, with 2.5 GW under execution and 3 GW in pipeline.

• Thermal capacity expected to rise from 4.6 GW to 10 GW by 2030, with major additions from Talabira and TPS-II expansions.

• Under-recovery expected to reduce further in the next financial year as plant refurbishments complete.

• Management remains confident in overcoming land acquisition challenges at Neyveli mines and ensuring lignite availability.

• Tariff petitions for 2024-29 and truing-up petitions for 2019-24 have been filed within statutory timelines.