NLCINDIANSE21 November 2022

NLC India Limited

7,934words
73turns
8analyst exchanges
0executives
Key numbers — 40 extracted
0.47%
gainst 13043.23 MU in the corresponding period of the previous year registering a slight growth of 0.47%, Lignite production during half year ended 30th September is 124.42 LT this year against 116.42 LT
6.87%
year against 116.42 LT in the corresponding period of the previous year, registering a growth of 6.87%. We witnessed a substantial augmentation of the coal production. Coal production during the half
18.76 Lakh
tion. Coal production during the half year ended 30th September 2022 this year is 49.75 LT against 18.76 Lakh ton in the corresponding period of the previous year, NLC average PLF up to September is 74.66% a
74.66%
8.76 Lakh ton in the corresponding period of the previous year, NLC average PLF up to September is 74.66% against all India average of 64.49%. Consolidated power export during half year ended 30th Septe
64.49%
eriod of the previous year, NLC average PLF up to September is 74.66% against all India average of 64.49%. Consolidated power export during half year ended 30th September 2022 is 14,312.99 MU against 13
3.07%
4,312.99 MU against 13,887.10 MU in corresponding period of previous year, registering a growth of 3.07%. And now coming to financial performance, standalone revenue from operation for the half year thi
Rs. 5,847.21 crore
coming to financial performance, standalone revenue from operation for the half year this year is Rs. 5,847.21 crore as against Rs. 4,853.63 crore in the previous year six months registering growth of up 20.47%. The
Rs. 4,853.63 crore
ce, standalone revenue from operation for the half year this year is Rs. 5,847.21 crore as against Rs. 4,853.63 crore in the previous year six months registering growth of up 20.47%. The total income of the company f
20.47%
47.21 crore as against Rs. 4,853.63 crore in the previous year six months registering growth of up 20.47%. The total income of the company for the half year ended 30th September 2022 is Rs. 5,997.68 crore
Rs. 5,997.68 crore
rowth of up 20.47%. The total income of the company for the half year ended 30th September 2022 is Rs. 5,997.68 crore as against Rs. 5377.11 crore growth in the corresponding period of the previous year, registering
Rs. 5377.11 crore
income of the company for the half year ended 30th September 2022 is Rs. 5,997.68 crore as against Rs. 5377.11 crore growth in the corresponding period of the previous year, registering a growth of 11.54%. Profit
11.54%
Rs. 5377.11 crore growth in the corresponding period of the previous year, registering a growth of 11.54%. Profit for the period for the half year ended 30th September ‘22 is Rs. 873.29 crore, against Rs
Guidance — 20 items
Rakesh Kumar
opening
“As a reminder, all participant lines will be in the listen only mode.”
Rakesh Kumar
opening
“There will be an opportunity for you to ask questions after the presentation concludes.”
Rakesh Kumar
opening
“The call will begin with the initial remark by the CMD, after which the floor will be open for Q&A session.”
Rakesh Kumar
opening
“This is definitely going to get a better picture for proceeding ahead on the Talabira Power Project.”
Rakesh Kumar
opening
“979.61 crore, this will also be a big factor to expedite the completion of the project timely.”
Mohan Reddy
qa
“That really is a big project having technical issues.”
Rakesh Kumar
qa
“So with the 400 MW signing PPA, we have completed 2,000 MW out of the 2,400 MW, balance 400 MW GRIDCO is willing to purchase for which, since it is a home state for the project, we don't have much doubt on their proceeding.”
Rakesh Kumar
qa
“Although our team is working round the clock for evaluation, as you are aware that it is a huge project with estimated cost of Rs.”
Rakesh Kumar
qa
“19,422 crore and in which the package which is a combination of three important packages, we used to earlier divide the project into three packages.”
Rakesh Kumar
qa
“In the meantime land acquisition is also going on, so progress is going on this project.”
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Risks & concerns — 4 flagged
But the lignite production is actually, you can say last year in the quarter to quarter, there is a marginal decline in lignite production and also power generation is also, you know, you can say it is almost a flat kind of thing.
— Rakesh Kumar
So why it is so much decline, whether we saw decline in the coal realization or the internal price of lignite or the external price of lignite.
— Rakesh Kumar
And the surcharge, which was although adding to the income, but it was not very happy moment for us, and it was adding risk to our business we are able to mitigate that risk and we are able to consolidate our position on real business through other sources like selling of lignite and coal and reducing our fixed, you know, under recovery.
— Rakesh Kumar
Is there any contingent, liabilities are there going to be any contingent liability risk for this account?
— Rakesh Kumar
Q&A — 8 exchanges
Q
Good evening, sir. Thank you for the opportunity. So can you please highlight why the mining profit has gone down on a quarter to quarter basis and regarding the interest cost, why the interest is high on a quarter to quarter basis. There is no capital addition or the capital commissioning of the new CapEx. Why the interest cost is high. These are the two questions. Thank you.
Rakesh Kumar
Yes, thank you very much. Mining profit if we see this this H1, the profit in first half year is Rs. 819.36 crore, whereas last year H1 was Rs. 377.24 crore. So it has substantially increased. And the main reason for this increase is because of the coal production Sorry sir. Sorry to interrupt. I'm just referring to the quarter to quarter from first quarter to second quarter. Worry why this is it dip in the profitably of the mining segment. First quarter and second quarter always there is a difference if you see that our mining operations are affected by the monsoon. And because of the monsoon
Q
Yes, Thanks for the opportunity, sir. The first question is on the, what is the status NLC Talabira coal power plant? When are we expected to give the order out? Has the bidding happen? And similarly, you can you can tell us about the Neyveli 1320 MW power plant. Sure. Talabira tender for 3 into 800 MW which is under process. Now we are in the process of evaluation of the techno commercial bid, our Director P&P Shri Mohan Reddy is here, and I would like to request him to share more details about this. Talabira thermal power plant tender was opened, PQ evaluation is completed, in which L&T and
Mohit Kumar
When Can we expect the order sir? We are trying to expedite. But there are two more fronts on which we have to progress. One was PPA, another was land acquisition. So land acquisition second RPDAC meeting has been held on August 19th. And on the front of PPA, I have also already shared the good news that we have signed the PPA for 400 MW with the KSEB on 19th October. As you may, please recollect that we have already signed PPA with TANGEDCO for 1500 MW on 16th March, 2022, and with Pondicherry for 100 MW, PPA was signed on 9th May, 2022. So with the 400 MW signing PPA, we have completed 2,000
Q
Good evening, sir. Thank you for the opportunity. So what is a regulated equity at the end of this quarter? As on 30th September 2022, we have a total regulated equity of INR 6593.19 crore, out of which mine regulated equity is INR 2830.78 crore. And thermal regulated equity is INR 3762.41 crore.
Anant Mundra
So does this include the regulated equity of our subsidiary NTPL. No, no, it is not including the regulated equity of NTPL, NTPL is a separate company. So these figures are without considering the NTPL. Sir, how much would be the regulated equity of NTPL? NTPL We have a regulated equity of Rs.1490 crore and the total equity is Rs.2200 crore. All right. And how much is the equity that is invested in the renewable projects? Both under construction and commission? Right now there is no under construction solar project, we have completed 1,421 megawatt of renewable energy out of which 51 megawatt
Q
Thank you, sir, for the opportunity. I've got a couple of questions. So what is the current inventory level of coal that we have and how do you see the H2 sales of coal fields basically?
Rakesh Kumar
Yes, so inventory level, actually, we it is not advisable to store more coal because we cannot keep the coal in safe condition for long duration. So our inventory is ranging from 2 lakh to, 4 lakh ton at Talabira pit head, And as of now, it is reaching around 2 Lakh ton only. As far as the future prospects of coal is concerned, as we can see, that there is a rise in the demand for power and Talabira mines were allocated to us to primarily meet our end use plant NTPL and Talabira pit head power plants. And in the meantime, since some sometime is there for us to get the Talabira pit head power p
Q
Thank you, sir, for the opportunity. So the first question, so you have mentioned that we have taken a charge of INR 88 crore on reevaluation of receivables. So what was the total amount? And if you can tell us, the statewise receivables, which have been converted into installments? Actually as per the circular they have the option and these were to be finalized after getting the clarity on the dues. However, based on the letters, which different discoms have given, they have started paying in installment at their own. And we are in discussion with the discoms to arrive at the final figure. Bu
Anshuman Ashit
Which are the other states that we are in discussion with? Other states Telangana and Karnataka. Okay. Sir, what has been the PAF of TPS I expansion and NNTPs during the quarter or the first half? Yes, I'm working on that. Please go to the next, I have got PLF figures right now. Okay. In case of TS1 expansion, we have achieved a PLF of 68.46% in the H1. In the case of TPS1 expansion first half PAF is 86.29%. And in case of NNTPP, the PAF is 92.27%, in the first half. Okay. So what has been the CapEx in the first half and what is the target for FY ‘23, ‘24 and ‘25. And can you please split it f
Q
What is the e-auction price for coal for October? Or if you can give the e-auction for Lignite also, that would helpful. Thank you.
Rakesh Kumar
Yes,. Lignite, we have not auctioned in the month of October. As I shared with you that we are facing issues in the land acquisition, .In case of Barsingsar mines in the month of October we have e –auctioned, and the price is INR 4830 to INR 4930 per ton. And for coal ,the average price, the range between the price lowest and is INR 2,690 lowest and INR 2,740 per ton as the highest price for the recent auction of 2.5 lakh ton coal auction.
Q
Sir first question regarding the realization. You said Lignite you realized Rs.4,800 per ton in Rajasthan Barsingsar , and here you realized only Rs.2,750 per ton for coal.
Rakesh Kumar
Yes, yes. because of obvious reasons that coal supply is more, and it is, you know, the coal buyers are near to the mines definitely the supply factor is more and more auction is taking place not only by NLC, but by Coal India also. But in Rajasthan, the availability of coal up to Rajasthan is less. And Lignite availability in the market was also less because earlier we were not given the permission to sell. Now only we have been given, so definitely there is a huge demand. So we are trying to augment the supply in Rajasthan so that the customers can be satisfied. We get the supplies augmented
Q
It is also very heartening that lot of support from the Ministry of Coal and DIPAM is being extended to support the cause of the investors and try to bring a lot of information transparently about the business of the company. And we will continue to strive for making the investors call and investors interaction and presentations more informative and more transparent and more giving insight into the complex issues which are coming in the mind of investors. We are thankful to all the investors and all the agencies who are finding interest to connect to us on the investors calls. Thank you very m
Management
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Speaking time
Rakesh Kumar
22
Rabindra Nath Nayak
10
Moderator
9
Rakesh Kumar
8
Anshuman Ashit
6
Mohit Kumar
5
Mukesh Agrawal
4
Nikhil Abhyankar
3
Anant Mundra
2
Suresh Chandra Suman
2
Opening remarks
Rakesh Kumar
Ladies and gentlemen, good day and welcome to NLC India Limited, Q2 FY ‘23, post results conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” and then “0” on your touchstone telephone. Please note that this conference is being recorded. I now hand a conference over to Mr. Rahul Modi from ICICI Securities. Thank you. And over to you, sir. Thank you. Good evening, everyone, and welcome you all to the Q2 FY ‘23 post results conference call of NLC India Limited. Today we are pleased to host the entire senior management of the company led by Mr. Rakesh Kumar, Chairman and Managing Director; along with Mr. Kumar, we've got the entire management of NLC and few esteemed guests from the Ministry of Coal, Ministry of Finance DIPAM. The call will begin wi
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