Q4 to see more growth in production & generation: Neyveli

Neyveli Lignite Corporation's net profit jumped 20 percent year-on-year to Rs 221.6 crore in the third quarter of financial year 2012-13, led by exceptional gain of Rs 63 crore.

Net sales grew by 20 percent to Rs 1,255.7 crore from Rs 1,046 crore during the same period.

NLC on track to achieve 10,000 MW capacity target: CMD

B Surender Mohan, CMD, Neyveli Lignite in an interview to CNBC-TV18 said growth in their turnover and profits was mainly due to increase in production and generation. He added, “This quarter has been the highest ever for power generation and lignite production compared to any quarter in the previous years of Neyveli Lignite Corporation (NLC).”

He further asserted they had investment plans of about Rs 30,000 crore for the 12th five year plan.

Below is the edited transcript of his interview on CNBC-TV18

Q: You have reported an exceptional gain of around Rs 69.2 crore. Could you run us through your numbers, how did you make this gain and how your margins are looking like as well?

A: Today we had our board meeting and we have announced our result and our Q3 results are very good. We had a growth of 20 percent in our turnover. Profit also has been around 19 percent over the corresponding period of the last quarter. For the year from April to December, we had a growth in turnover of 17 percent and profit gain from April-December was 5 percent. This was because of the increase in our production and our power generation.

Q: So you are saying you are seeing this 20 percent growth as far as turnover goes and 19 percent growth on the profit front because of increase in production and generation. Could you take us through the Q3 generation and also how your plant load factor (PLFs) are faring?

A: In power generation we had growth of 13.12 percent for the quarter. This quarter has seen the highest ever for power generation and lignite production compared to any quarter in the previous years of Neyveli Lignite Corporation (NLC).

Q: Talking about Lignite mining, you had seen some amount of pressure last year. Essentially what’s been the sales growth for lignite mining and power this quarter and going ahead what is your guidance?

A: This quarter October-December, we had little help because there was not much monsoon in the area. We have improved our efficiencies in the maintenance part. The availability of equipments was good, that also helped in achieving this growth in the previous quarter.

In the coming quarter also good growth will be there and this year we are going to have highest ever production in both lignite production and power generation also.

Q: Talking about Lignite mining, you had seen some amount of pressure last year. Essentially what’s been the sales growth for lignite mining and power this quarter and going ahead what is your guidance?

A: This quarter October-December we had little help because there was not much monsoon in the area. We have improved our efficiencies in the maintenance part so the availability of equipments was good, which helped in achieving this growth in the previous quarter. In the coming quarter also good growth will be there. So, this year we are going to have highest ever production in both lignite production and power generation also.

Q: Are there any dues from state electricity boards and any plans for further investments?

A: Dues we are having more than Rs 3600 crore from the Tamilnadu Electricity Board and the total dues will be around Rs 4000 crore odd. We have got lot of plans for the investments. In the 12th plan, we are going to invest around Rs 30,000 crore.

Q: What time period for this level of investment?

A: In the 12th plan period we are planning to invest Rs 30000 crore.