NLC India Reports Mixed Financial Results Amid Debt and Efficiency Concerns in June 2025

NLC India, a midcap player in the power industry, recently announced its financial results for the quarter ending June 2025. The evaluation changes reflect a notable shift in the company's score, which has seen a revision from 8 to 2 over the past three months.
The financial results indicate some positive aspects for NLC India. The Profit After Tax (PAT) for the quarter stands at Rs 797.59 crore, marking a growth of 21.7% compared to the average PAT of Rs 655.33 crore from the previous four quarters. Additionally, the company has achieved its lowest Debt-Equity Ratio in the last five half-yearly periods at 1.20 times, suggesting a reduction in borrowing relative to equity capital. Furthermore, the Debtors Turnover Ratio has reached a high of 4.86 times, indicating improved efficiency in settling debts.

Conversely, there are areas of concern. The Profit Before Tax less Other Income (PBT) has declined significantly to Rs 303.36 crore, reflecting a decrease of 42.1% compared to the previous four quarters' average. Rising interest costs, now at Rs 624.09 crore, indicate increased borrowings, while the Inventory Turnover Ratio has dropped to its lowest at 7.99 times, suggesting a slowdown in inventory sales. Additionally, a substantial portion of the PBT, at 48.89%, is derived from non-operating income, raising questions about the sustainability of the business model.

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