ABOUT THE STOCK
Neyveli Lignite Corporation Limited (NLC) is a government of India enterprise. A Mini Rathna lignite mining company.The company wholly owned by the Union Government about 49% and administered by Ministry of Coal.
NLC operates the largest lignite mines in India and mines some 24 million tonnes of lignite per year for fuel , with an installed capacity of 2490 MW of electricity per year. The company's operations are in Neyveli.The company operates thermal power plants, three large mines.
ABOUT THE FINANCIALS
Excessive rains, affecting production at its mines and downstream thermal units this PSU has posted bad results for Q3FY11. QoQ, topline fell 18% and net profit slipped 65% and YoY, there was a 30% fall in net revenue and 74% fall in net profit. Margins also indicate this pressure, OPM which was around levels of 49% has now slipped to 28% and NPM from over 25% levels fell to 11%.
TOPS NEWS
TOPS NEWS
1. Commissioning of its downstream thermal power station TPS – II is now expected to be completed by end of the year.
2. Expansion at Barsingsar is scheduled to be completed within next 2-3 months.
3. No major firework numbers are expected in QUARTER IV
2. Expansion at Barsingsar is scheduled to be completed within next 2-3 months.
3. No major firework numbers are expected in QUARTER IV
ABOUT THE STOCKS
The company is holding a significant share in the field of power generation. Though the company is facing tough times and as better options are available in the market so buying should be avoided at present times.
