NLC India Result & Concall Notes (Feb 2025): Key Insights & Updates

NLC India Result and Concall Notes – February 2025

Power Generation Growth

NLC India has expanded its power generation capacity from 6,071 MW to 6,731 MW. This was achieved through the successful operation of NUPPL Ghatampur Thermal Power Station’s Unit No. 1 (660 MW), which uses advanced ultra-supercritical technology.

Coal Mine Expansion

NLC executed an agreement for the New Patrapara South Coal Mine Project, adding 12 million metric tons per year to its coal production capacity. This brings the company’s total capacity to over 100 million metric tons.

New Joint Ventures

• Partnered with RVUNL for a 3 x 125 MW lignite-based thermal power project in Rajasthan.
• Subsidiary NIRL joined hands with RVUNL for a 2 GW renewable energy project in Rajasthan.
• Another 1 GW solar power project will be developed in Assam in collaboration with Assam Power Distribution Company.

Performance Metrics

Production and Generation Growth

• Lignite production: 171.35 lakh metric tons (5.23% increase YoY).
• Coal production: 115.16 lakh metric tons (40% increase YoY, highest-ever output).
• Total power generation: 20.568 billion units (4.71% increase YoY), including 1.579 billion units from renewable sources.

NLC india Financial Performance

• Revenue from operations: ₹11,445 Cr (21% growth YoY).
• Total income: ₹12,909 Cr (30% growth YoY).
• Profit after tax: ₹2,245 Cr (28% increase YoY).

Capital Expenditure (Capex)

• Achieved ₹5,247 Cr in capex, surpassing the annual target for FY25.
• Ministry of Finance granted capital gains tax exemption for transferring renewable assets from NLCIL to NIRL.

Financial Challenges and Recovery

Under Recovery Reduction

• Under recovery for the first nine months stood at ₹517 Cr, improving from ₹725 Cr YoY.
• Standalone under recovery reduced to ₹500 Cr from the previous ₹571 Cr.
• The full-year under recovery is projected to be around ₹600 Cr.

Key Project Updates

TPS II Expansion

• Short-term enhancements have improved availability and reliability.
• Long-term upgrades are in progress and should be completed by March 2025.

Upcoming Projects

• 1 GW power plant in Neyveli: Tender expected by March 2025.
• Pachwara South Coal Block: Production delayed due to forest clearance issues, now targeted for July 2025.
• Ghatampur Unit-II & III: Expected commercial operations by May and October 2025.
• New Patrapara coal mine: Production expected to begin by February 2028.

Joint Ventures Timeline

• 3 x 125 MW Rajasthan lignite plant and 2 GW renewable project to be completed within 36-40 months post-agreement.
• 1 GW solar project in Assam to be operational within 12-15 months.

Renewable Energy Strategy

• NLC aims to expand renewable energy capacity to 10 GW by 2030 (currently at 1.4 GW).
• Ongoing projects:
  • 300 MW in Barsingsar
  • 600 MW in Khavda
  • 810 MW in Rajasthan
• Exploring joint ventures with state governments to increase renewable energy capacity.

Challenges and Future Outlook

• The management is working on reducing under recovery losses through plant modifications.
• No immediate concerns regarding lignite availability.
• A strong pipeline of projects is expected to boost operational efficiency and profitability.

Regulatory Developments

• Regulatory deferrals impact profitability but do not affect revenue.
• Regulatory equity: Currently at ₹9,383 Cr, expected to cross ₹19,000 Cr by 2030 with new investments.

Diversification Initiatives

• OB to Sand: Pilot projects are in progress.
• Critical Minerals: Actively participating in mineral auctions.
• Green Hydrogen: Developing a pilot project, with electrolyzer procurement underway.

NLC India is on a strong growth path with new projects, joint ventures, and increased capacity. The company is addressing challenges effectively and is positioned well for long-term expansion in both conventional and renewable energy.

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