Shares of NLC India surged by as much as 5 percent on November 22 after the company emerged as the highest quoted (H1) bidder for the New Patrapara South Coal Mine in Odisha’s Angul district.
This follows the commercial coal block e-auction conducted by the Ministry of Coal on November 21. At 2:50 PM on the same day, NLC India’s shares were trading 4 percent higher at Rs 263.
Although the stock has gained 5 percent year-to-date, it has underperformed the Nifty 50 index, which rose by 9 percent during the same period. This increase in share price marked the fourth consecutive session of gains for the company’s stock.
The New Patrapara South Coal Mine, which NLC India is set to acquire, holds a total geological reserve of approximately 720.9 million tonnes, with a peak rated capacity of 12 million tonnes per annum.
The official confirmation of NLC India's successful bid is still awaited from the Ministry of Coal. If confirmed, this will be the company’s third commercial coal mine, signaling its continued expansion into the coal mining sector.
However, NLC India recently reported a challenging financial performance for the September quarter. The company’s standalone net sales fell by 13.4 percent, dropping to Rs 2,139.2 crore from Rs 2,471.3 crore in the same period last year.
Net profit also took a significant hit, plunging nearly 70 percent to Rs 339.4 crore, down from Rs 1,121.41 crore a year ago.
The company's EBITDA stood at Rs 743.12 crore, marking a 25.5 percent decline from Rs 997.84 crore in September 2023. NLC India is primarily engaged in mining lignite and generating power using both lignite and renewable energy sources.
