NLC India Shares Surge After Threefold Jump In Q3 Profit

Shares of NLC India Ltd. rose over 12% on Tuesday after it reported a threefold jump in the third quarter of the current financial year, beating analysts' estimate.

NLC reported a profit of Rs 668 crore for the three months ended Dec. 31, 2024, as compared to Rs 250 crore for the same period last year. The public sector undertaking's revenue surged 39% to Rs 4,411 crore for the October–December quarter from Rs 3,164 crore in the year-ago period.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose over 101% year-on-year to Rs 1,827 crore. The Ebitda margin expanded to 41.4% from 28.6% in the same period the previous year.

NLC India declared a dividend of Rs 1.5 per share at a face value of Rs 10 each for 2024-25. It has fixed Feb. 7 as the record date for the dividend, while the same will be paid to the shareholders on or before March 4.

The board of the company approved a proposal to invest Rs 1,110 crore in the joint venture that will be incorporated between NLC India and Rajasthan Rajya Vidyut Utpadan Nigam Ltd. The JV will assist in developing lignite-based thermal power stations and lignite mines at Rajasthan.

Shares of NLC India rose as much as 12.33% to Rs 237.40 apiece, the highest level since Jan. 13. It pared losses to trade 10.43% higher at Rs 233.14 apiece, as of 11:31 a.m. This compares to a 0.77% advance in the NSE Nifty 50.

The stock has fallen 15.14% in the last 12 months. Total traded volume so far in the day stood at 56 times its 30-day average. The relative strength index was at 54.

The two analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 48.7%.