Neyveli Lignite net profit up 20% annually

Total income drops 3% to Rs 1510.45 crore during the quarter ended June 30

Neyveli Lignite Corporation Ltd has posted an increase of 20% in net profit at Rs 334.05 crore for the quarter ended June 30, 2014, as against Rs 278.43 crore posted during the same period of previous fiscal year. The total income from operations experienced a drop of 3.15%, to Rs 1510.45 crore for the quarter, as compared to Rs 1559.57 crore posted during the corresponding quarter of previous fiscal year.

The power sales of the company has come down since the determination of power tariff is pending with the Central Electricity Regulatory Commission (CERC). Pending determination of power tariff, sale of power is accounted by adopting provisional tariff calculated on the basis of pre-revised lignite transfer price (pending Ministry of Coal guidelines for the period 2014-19) for energy charges and norms and parameters mentioned in the CERC regulatiion for the period 2014-19 for capacity charges.

"Consequently, power sale is reduced to the extend to Rs 13 crore for the quarter ended June 30, 2014," said the company.