NLC braves 35-day rain & floods to stay afloat with Rs 758-cr profit

Despite being battered by unprecedented heavy rains and floods for 35 days in November and December 2015, NLC has managed to stay afloat with profits. It registered a Rs 758-crore net profit upto third quarter in 2015-16 as compared to Rs 903 crore for the corresponding period of previous year 2014-15. This reduction by about 16 per cent is mainly due to reduction of Net profit of Q3 alone which stands at Rs 47.61 crore as compared to Rs 309 crore of third quarter in previous year 2014-15. 

Reduction of profit in Q3 attributable to heavy loss of Lignite production and power generation estimated around Rs 450 crore due to the unprecedented rain and heavy floods in the month of November and December 2015 for about 35 days which submerged NLC Mines and choked the power generation in its power plants at Neyveli complex.

Besides during the third quarter an additional impact due to VRS, wage revision arrears to the workmen and additional statutory payment on clean energy cess amounting to Rs 115 crore was borne by the company. 

However with all these, not withstanding the loss caused due to the reasons beyond the control of the company, NLC managed to stay afloat with the profit of Rs 47.61 crore which otherwise would have been substantially more. However on a cumulative basis for 9 months period April to  December 2015, the net decline is only 16 per cent which amounts to Rs 145 crore.