NLC clocks 37 pc jump in Q1 net profit at Rs 567 crore

New Delhi: Government-owned NLC India Ltd on Wednesday reported a 37 per cent jump in consolidated net profit to Rs 566.69 crore for the April-June quarter of the current financial year, from Rs 413.57 crore in the same quarter of the previous year.

The total income of the group in the April-June quarter rose to Rs 3,640.60 crore, over Rs 3,428.48 crore in the year-ago period, according to an NLC statement.

The company said that the board has approved raising the investment limit in the equity shares of Nevyeli Uttar Pradesh Power Ltd (NUPPL) from Rs 2,637.38 crore to Rs 3,676.00 crore in one or more tranches. However, this is subject to approvals from the Coal Ministry and other government departments. NUPPL is a joint venture of NLC India Ltd (NLCIL) and Uttar Pradesh Rajya Vidyut Nigam Ltd (UPRVUNL).

The board has also approved an increase in the investment limit in the equity shares of NLC India Green Energy Ltd (NIGEL) from Rs 50 crore to Rs 1,500 crore in one or more tranches subject to approvals from the Coal Ministry and others. The company had earlier said that it is planning to raise funds through an Initial Public Offering (IPO) of its wholly-owned subsidiary NLC India Renewables Ltd by the first quarter of the next financial year. The funds raised will be used in its clean energy expansion plans.

NLC India is a 6 GW company consisting of 1.4 GW renewable capacity and 4.6 GW thermal capacity. NLC India -- the first company in the country to add 1 GW renewable capacity -- has plans to scale up its power capacity to 17 GW by 2030. The company also said that it has emerged as the successful bidder for the Machhakata coal block in Odisha under a commercial auction conducted by the Coal Ministry. This is the second commercial coal mine won by NLCIL in the competitive bidding.

NLC said that it has got the approval of the Centre for the implementation of the Pachwara South Coal Block (PSCB) project at Jharkhand State by NUPPL at an estimated capital cost of Rs.2242.90 crore. Besides, an MoU was signed with DVC for the supply of 2.0 MTPA of coal from Talabira II & III Mines.

NLC India is a navratna company under the Coal Ministry with mining and power generation as its core business.