NLC reports Q3 net profit of Rs. 757 cr. drop in profit mainly due to Chennai rains

Sarkaritel
By Sarkaritel January 28, 2016 13:47

NLC reports Q3 net profit of Rs. 757 cr. drop in profit mainly due to Chennai rains


NEW DELHI: NLC posts Rs.758 Crs. Net profit upto Third Quarter in 2015-16 as compared to Rs.903 Crs. for the corresponding period of previous year 2014-15. This reduction by about 16% is mainly due to reduction of Net Profit of Q3 alone which stands at Rs.47.61 Crs. as compared to Rs.309 Crs. 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 Crs. due to the unprecedented rain & heavy floods in the month of November & 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 arrear to the Workmen and additional Statutory payment on Clean Energy cess amounting to Rs. 115 Crs. 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 Crs. which otherwise would have been substantially more.

However on cumulative basis for 9 months period April to December 2015, the net decline is only 16% which amounts to Rs. 145 Crs. for which recovery plan are in force to catch up by end of FY 2015-16.

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Sarkaritel
By Sarkaritel January 28, 2016 13:47