Any current/future new fundraising through debt or equity?

NLC India Limited is undertaking significant CapEx plans totaling around INR 72,000 crore plus over the next eight years, with targets of INR 8,244 crore for FY 2023-24. The company has revised its corporate plan to avoid seeking any financial assistance in terms of equity. It is focused on internal generation of funds and improving revenues through commissioned projects like Ghatampur (1,980 MW) and NNTPP. Rakesh Kumar confirmed there is no plan to raise equity in the near term to finance expansions due to consolidated net worth and improved cash flows. No explicit mention was made about new

Any current/future capex/capital investment/strategic investment?

Total CapEx target up to 2030: INR 72,000 crore plus, with INR 8,244 crore planned for FY23-24, likely increasing thereafter. FY22-23 CapEx target: INR 2,920 crore split as follows: - Mining projects: INR 190 crore (including Talabira mine 2 & 3, area extension, South Pachwara mine JV). - Power sector: INR 860 crore (including NNTPS, NUPPL, Odisha thermal plant). - Joint ventures: INR 1,770 crore (Pachwara INR 110 crore, NTPL FGD INR 250 crore, NUPPL Ghatampur INR 1,510 crore). Coal gasification project approved by board with a cost of Rs. 4,394 crore; EPC tender initiated. Talabira coal

Future growth expectations in sales/revenue/volumes?

NLC India Limited targets significant capacity expansion, with total CapEx planned at over INR 72,000 crore up to 2030 to drive growth. FY 2023-24 CapEx target is INR 8,244 crore, expected to increase in subsequent years, supporting higher production and sales. Coal production target for current year is 13 million tons, nearly doubling previous year's 6.35 million tons. Coal supply prioritized to internal plants (NTPL) and NTPC under MOUs, with surplus coal to be auctioned, reflecting strong demand. Renewable energy capacity completed 1,421 MW with an equity investment of INR 1,675 crore; no c

Current/ Expected Orderbook/ Pending Orders?

The Talabira coal power plant tender for 3x800 MW is under techno-commercial bid evaluation, with L&T and BHEL as bidders. The process is progressing with finalization expected soon. (Page 6) The estimated cost for the Talabira project is Rs. 19,422 crore, combining three major packages into a single package for bidding. (Page 6) For the Neyveli 1320 MW power plant, discussions on land acquisition and Power Purchase Agreement (PPA) progress well; PPA signed for 400 MW with KSEB, completing 2,000 MW out of 2,400 MW capacity with other PPAs already signed. (Page 6) GA4 package in Ghatampur va

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NLC India LtdQ3 FY23Power

NLC India Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹296P/E: 16.8Market Cap: ₹43.9K CrSector: Power

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→NLC India Limited targets significant capacity expansion, with total CapEx planned at over INR 72,000 crore up to 2030 to drive growth.
→FY 2023-24 CapEx target is INR 8,244 crore, expected to increase in subsequent years, supporting higher production and sales.
→Coal production target for current year is 13 million tons, nearly doubling previous year's 6.35 million tons.
→Coal supply prioritized to internal plants (NTPL) and NTPC under MOUs, with surplus coal to be auctioned, reflecting strong demand.
→Renewable energy capacity completed 1,421 MW with an equity investment of INR 1,675 crore; no current solar projects under construction but planned expansions implied.
→Power generation and exports show modest growth; coal production and sales increasingly contributing to revenue.
→Emphasis on augmenting lignite and coal supplies in demand-constrained regions like Rajasthan to meet customer needs and improve realizations.

Margin guidance

Category 3

- NLCIL's profit after tax for H1 FY23 rose by 77.76% to Rs. 985.86 crore compared to previous year. - Coal mining profits significantly increased (Rs. 819.36 crore in H1 FY23 vs Rs. 377.24 crore last year). - Expansion projects like Ghatampur (1,980 MW) nearing commissioning, expected to boost revenue and profits. - NTPL power plant started contributing to revenue, enhancing earnings. - CapEx plan of Rs. 72,000+ crore till 2030 to drive growth; FY24 CapEx target is Rs. 8,244 crore. - Improving coal production and sales (target 13 million tons FY23) support operating income. - Dividend payout expected to be maintained alongside growth plans, indicating confidence in earnings growth. - Reduction in under-recovery in thermal segment, and mitigation of surcharge risks improve profitability. - Strong operational performance with increasing PLF (up to 92.27% in NNTPP) enhances operating income. Overall, NLCIL expects steady growth in earnings driven by capacity additions, improved coal production, and efficient operations.

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Fundraise plans

Yes

→NLC India Limited is undertaking significant CapEx plans totaling around INR 72,000 crore plus over the next eight years, with targets of INR 8,244 crore for FY 2023-24.
→The company has revised its corporate plan to avoid seeking any financial assistance in terms of equity.
→It is focused on internal generation of funds and improving revenues through commissioned projects like Ghatampur (1,980 MW) and NNTPP.
→Rakesh Kumar confirmed there is no plan to raise equity in the near term to finance expansions due to consolidated net worth and improved cash flows.
→No explicit mention was made about new debt fundraising, but ongoing large CapEx projects and joint ventures indicate possible continued debt utilization or structured financing.
→The company aims to balance shareholder dividends with growth capital requirements without adverse impact.

Order book

→The Talabira coal power plant tender for 3x800 MW is under techno-commercial bid evaluation, with L&T and BHEL as bidders. The process is progressing with finalization expected soon. (Page 6)
→The estimated cost for the Talabira project is Rs. 19,422 crore, combining three major packages into a single package for bidding. (Page 6)
→For the Neyveli 1320 MW power plant, discussions on land acquisition and Power Purchase Agreement (PPA) progress well; PPA signed for 400 MW with KSEB, completing 2,000 MW out of 2,400 MW capacity with other PPAs already signed. (Page 6)
→GA4 package in Ghatampur valued at Rs. 979.61 crore was awarded on 30th September to expedite project completion. (Page 4)
→Overall, large projects are moving forward with ongoing evaluations and contract awards, but some technical issues remain under resolution. (Pages 4-6)

Capex plans

Yes

→Total CapEx target up to 2030: INR 72,000 crore plus, with INR 8,244 crore planned for FY23-24, likely increasing thereafter.
→FY22-23 CapEx target: INR 2,920 crore split as follows:
→ - Mining projects: INR 190 crore (including Talabira mine 2 & 3, area extension, South Pachwara mine JV).
→ - Power sector: INR 860 crore (including NNTPS, NUPPL, Odisha thermal plant).
→ - Joint ventures: INR 1,770 crore (Pachwara INR 110 crore, NTPL FGD INR 250 crore, NUPPL Ghatampur INR 1,510 crore).
→Coal gasification project approved by board with a cost of Rs. 4,394 crore; EPC tender initiated.
→Talabira coal power plant and Neyveli 1320 MW power plant tenders progressing; award targeted by current financial year.
→Ghatampur project (1,980 MW) progressing, expected to commission within a year.
→Corporate plan revised to avoid equity infusion; growth to be funded internally without affecting dividend policy.

How does NLC India Ltd rank vs peers in Power?

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