NLC India Q1 net profit rises 37 percent

NLC India Ltd on Wednesday reported a 37 percent rise in consolidated profit at Rs 566.69 crore for the quarter ended June 30, 2024. The company had posted a net profit of Rs 413.57 crore in the year-ago period, NLC India Ltd said in a filing to BSE. The income of the company in the April-June period rose to Rs 3,640.60 crore, over Rs 3,428.48 crore in the year-ago period, the filing said.

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 DIPAM among others.

NUPPL is a joint venture of NLC India Ltd (NLCIL) and Uttar Pradesh Rajya Vidyut Nigam Ltd (UPRVUNL). The board has also approved increasing 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.

Lignite-to-power producer 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 via the IPO will be used in its clean energy expansion plans, it had said.

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. While NLC India Renewables Ltd was incorporated to pursue asset monetization of renewable energy projects.

NLC India Green Energy Ltd was formed to undertake future renewable energy projects of NLCIL.NLC India is a Navratna company under the Ministry of Coal. Its core business is mining and power generation.