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CARE assigns rating to NLC India’s bank facilities

09 Nov 2016 Evaluate

Credit rating agency, CARE has assigned ‘AAA’ rating to NLC India’s long-term bank facilities worth Rs 481 crore. The rating assigned to the long-term bank facilities of NLC India (NLC)derives strength from the company being a ‘Navratna’ Public Sector Enteprise with 90% stake held by Government of India (GOI), its long operational track record of around six decades, assured offtake of power (by virtue of being one of the lowest cost producers largely due to high operational efficiency and depreciated nature of its plants), presence of own lignite mines with adequate resources resulting in guaranteed fuel supply, its strong financial position characterized by highly favourable capital structure along with high profit margin and consistently healthy internal accruals.

NLC India is engaged in the business of lignite mining and power generation. During FY16, NLC generated PAT of Rs 1044 crore on a total income of Rs 8375 crore as against PAT of Rs 1579 crore on a total income of Rs 6777 crore during FY15.

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