Excessive monsoon in Q3 hit earnings: Neyveli Lignite

Neyveli Lignite Corporation has announced its third quarter numbers. The company's Q3 revenue was down 30.6% at  Rs 869.2 crore versus Rs 1251.7 crore, YoY. Its Q3FY10 total operating income included Rs 388.7 crore from adjustment related to previous year. The company's net profit was down by 74.1% at Rs 96 crore versus Rs 371.1 crore YoY.

In an interview with CNBC-TV18, K Sekar, Director of Finance, Neyveli Lignite gave his perspective on the quarter gone by and the road ahead. Below is a verbatim transcript. Also watch the accompanying video. Q: What affected your numbers? Is it excessive monsoon or has there been some genuine delay in commissioning? A: You are absolutely right, it was due to the excess monsoon. This year we had unexpected rain to the extent of 1461 mm and the incessant rain was there for 51 days. Over a period of two decades, it is the highest recorded, which affected our production in our mines and also impacted on the downstream units of thermal power plants. The profit is automatically a derivative of sale of our power generation, and so it has dipped. But we hope that in Q4, we will be in a position to recoup. In addition to that there is also one problem; there was delay in commissioning of our downstream thermal power station TPS