State-run NLC India Ltd (NLCIL) reported its financial results for the fourth quarter of FY25 on Monday, May 19, after market hours. The results showcased a strong turnaround in profitability, operational growth, and a strategic expansion plan through a joint venture.

Exceptional Growth in Net Profit

NLC India's net profit skyrocketed by 323% year-on-year, reaching ₹482 crore in Q4FY25, compared to just ₹114 crore in the corresponding quarter of FY24. This significant jump indicates improved operational efficiency and cost control, despite the marginal rise in revenue.

• Q4FY25 Net Profit: ₹482 crore

• Q4FY24 Net Profit: ₹114 crore

• YoY Growth: 323%

This steep increase in profit underscores strong bottom-line performance in a competitive and regulated power sector, especially for a public sector undertaking (PSU) like NLC India.

Solid Revenue and EBITDA Performance

The company also saw a healthy rise in revenue from operations, which increased by 8.3% to ₹3,836 crore, compared to ₹3,540.6 crore in Q4FY24. This shows consistent demand and better realisations in NLCIL’s core operations.

• Q4FY25 Revenue: ₹3,836 crore

• Q4FY24 Revenue: ₹3,540.6 crore

• YoY Growth: 8.3%

In terms of EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation), the company reported a sharp 43% YoY increase, reaching ₹861.3 crore, up from ₹602 crore in the year-ago quarter. This pushed the EBITDA margin to 22.5%, up from 17% last year.

• Q4FY25 EBITDA: ₹861.3 crore

• Q4FY24 EBITDA: ₹602 crore

• YoY Growth: 43%

• EBITDA Margin Expansion: From 17% to 22.5%

This reflects better cost management, fuel efficiency, and a favourable product mix, especially in thermal and mining segments.

Final Dividend Announcement

As part of its strong performance for the financial year 2024–25, NLC India’s Board of Directors recommended a final dividend of 15% (i.e., ₹1.50 per equity share).

This dividend is subject to the audit by the Comptroller and Auditor General (C&AG) and approval of shareholders during the company’s upcoming annual general meeting (AGM).

This decision is consistent with NLCIL's track record of returning value to shareholders and maintaining transparency in line with government-owned company standards.

Strategic Joint Venture with RVUNL

In a major expansion move, NLC India announced the approval of a joint venture (JV) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL). The equity participation in the JV will be in the ratio of 74:26, with NLCIL holding the majority stake.

Key Objectives of the JV:

• To establish, operate, and maintain a 3x125 MW lignite-based thermal power plant

• To develop and operate lignite mines for fuel supply

• To adhere to DIPAM guidelines and secure approvals from the Ministry of Coal and other relevant authorities

This JV is expected to enhance lignite utilization, create employment, and improve power availability in Rajasthan and nearby regions.

Market Reaction Post Results

The results were announced after market hours, and on the same day, NLC India shares closed at ₹236.95, down by ₹2.05 or 0.86% on the BSE. The muted reaction may reflect profit booking or cautious optimism among investors, pending further clarity on implementation of the JV and dividend payout timeline.

However, the strong financials and forward-looking strategy could support positive stock performance in the near future, especially once the market digests the implications of the JV and dividend yield.

Why This Matters

1. Strong Financial Turnaround

A 323% rise in quarterly profit is a significant achievement for any PSU, particularly in an industry facing challenges like fluctuating coal prices, regulatory constraints, and environmental obligations.

2. Strategic Expansion through JV

With its JV with RVUNL, NLC India is expanding its footprint in thermal power production and securing backward integration with lignite mining. This will improve its long-term fuel supply security and reduce operational risks.

3. Stable Shareholder Returns

The final dividend of ₹1.50 per share for FY25 reflects NLCIL’s commitment to rewarding its shareholders consistently, which adds to investor confidence.

About NLC India Ltd

NLC India Limited, formerly known as Neyveli Lignite Corporation, is a ‘Navratna’ PSU under the Ministry of Coal. It is engaged in:

• Lignite mining

• Thermal power generation

• Renewable energy projects

It has a pan-India presence and is diversifying aggressively into solar and wind energy alongside expanding its core lignite-based operations.

Conclusion

NLC India's Q4FY25 performance marks a milestone in its financial journey, with a sharp profit surge, strong operational metrics, and strategic moves like a joint venture with RVUNL. Coupled with a healthy dividend declaration, this update positions NLCIL as a reliable and growth-oriented PSU in the power sector.

Investors and stakeholders can expect further developments as the JV progresses and dividend distribution gets approved in the AGM.

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