Millennium Post

NLC full-fiscal profit up 4.33% on 5.84% revenue growth

Neyveli Lignite Corporation (NLC) kept its performance parameters up in the financial year 2015-16, despite set back to its operations due to incessant rain and floods for over a month in November/ December 2015. 

The total revenue of the company for the year 2015-16 rose to Rs 7,194.20 cr against Rs 6,796.97 cr of previous financial year registering a positive growth of 5.84%.  Similarly, the profit for the year 2015-16 before interest, depreciation and tax also rose to Rs 2741.85 cr against Rs 2627.88 cr for the year 2014-15, registering 4.33% positive growth. However, the net profit was impacted by non-stabilisation of operation of newly commissioned units of TPS- II expansion resulting in an under recovery of capacity charges (operating loss) to the tune of Rs 244.08 cr. 

Due to rain and flood in November/ December, the company suffered a power generation loss of 763.72  million units resulting in a consequential loss of estimated revenue of around 
Rs 409.73 cr. These factors attributed to reduction in net profit after tax to Rs 1204.15 cr (after adjusting exceptional item of expenditure of Rs 28.38 cr) as against Rs 1579.68 cr (including exceptional item of revenue of Rs 345.57 cr) in 2014-15. 

The company, this year, has proposed to give a dividend of 30% of its equity as against 28% dividend paid in last financial year. This would result in an additional financial commitment of Rs 39.08 cr and the dividend payout (including dividend distribution tax) this year would work out to 50.31% of profit after tax (PAT) as compared to 35.87% for fiscal 2014-15.
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