Neyvelli Lignite slumps on poor Q3

Neyveli Lignite Corp, the PSU mining lignite and generating power posted very disappointing numbers for Q3FY16. Its net profit for the quarter slumped by a huge 85% (YoY) to Rs.48 crore on a 16% drop in income at Rs.1255 crore.

The PSU kept the operating costs stable at Rs.1205 crore; of this, 46% is towards employee cost and this, during the quarter, rose over 3%. EBITDA was down 44% and other income slipped 26%. Finance cost was up 19% though tax came down 45%. Both its both segments did not do too well with power generation posting a loss and lignite showing a decline in both topline was well as EBIT.

Its net profit for 9MFY16 was down 16% at Rs.758 crore.

The stock price is down currently over 4% at Rs.72 levels with an intra day low at Rs.71.20. Its 52-week low stands at Rs.65.25 while the 52-week high is at Rs.94.25.