Neyveli Lignite Corp, the PSU mining lignite and generating power posted very disappointing numbers for

Q3FY16. Its net profit for the quarter slumped

a huge 85% (YoY) to Rs.48 crore on a 16% drop in income at Rs.1255 crore.
The PSU kept the operating costs stable at Rs.1205 crore; of this, 46% is towards employee cost and this, during the quarter, rose over 3%. EBITDA w
down 44% and other income slipped 26%. Finance cost was up 19% though tax came down 45%. Both its both segments did not do too well with power generation posting
loss and lignite showing a decline in both topline was well as EBIT.
Its net profit for 9MFY16 was down 16% at Rs.758 crore. Despite this, the company has declared a Rs.1.50/share interim dividend. Typical of PSUs where Govt owns 90
stake, reserves is very healthy at Rs.13,194 crore at end of H1FY16 cash balance was at Rs.4664 crore.
The PSU has a lignite capacity of 30.60 MTPA and power generation is at 2990 MW. Looking ahead, the company is putting up a Lignite mine at Bithnok, linked to a therm
plant with a 250 MW at a cost of Rs.2700 crore. It is also setting up a Barsingsar Thermal Power Station and lignite mine in Hadla at a total cost of Rs.2,628 crore. The P
is also looking at the option of reviving its lignite mining and power plant at Jayankondam in Tamil Nadu, though on a smaller scale 500 MW power capacity v/s ear
envisaged 1500 MW. The company will be soon commissioning two power projects at a total cost of Rs 10,000 crore, taking its total generation capacity to 4,240 MW.

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