Neyveli Lignite – Results Getting Dark

For the quarter ended 2QFY09 Neyveli Lignite reported an 8.19% fall in Net Sales to Rs 668.17 crore. This was mainly because of reduced power generation. Power generation declined from 4.37BU in Q2FY08 to 3.74BU in Q2FY09.

The Operating Profit Margin declined by 353 basis points to 32.03% due to 18.42% increase in employee cost from Rs. 188.92 crore in 1QFY08 to Rs. 223.72 crore in 2QFY09. Employee cost for the current quarter includes Rs. 61.17 crore (Rs. 37 crore for the corresponding previous quarter) towards provisional liability for pay revision. The subsequent Operating Profit for the quarter under review stood at Rs 213.99 crore which was 18% lower when compared with corresponding period last year.

Net profit went down 18.46% YoY to Rs. 188.39 crore from Rs. 231.04 crore in 2QFY08.