NELCO returned to profitability in the March quarter, reporting a net profit of ₹1.1 crore, compared to a net loss of ₹4.1 crore, that it had reported during the same quarter last year.
Revenue for the quarter also increased by 17.3% year-on-year to ₹79.2 crore from ₹67.5 crore.
In addition to the results, NELCO’s board also approved a final dividend of ₹1 per share, which will be subject to approval from shareholders at the upcoming Annual General Meeting (AGM).Tata Power is the promoter of NELCO, owning a 50% stake in the company as of the March quarter.
India’s Mutual Funds do not have any shareholding in NELCO, while Schlumberger Ltd. owns a 3.8% stake. As many as 6.9 lakh small retail investors, or those with authorized share capital of up to ₹2 lakh, have a 33.1% stake in the company.
Shares of NELCO are trading 13.3% higher on Tuesday at ₹763.7. With this move, the stock has reversed all of its losses for the year, and turned positive on a year-to-date basis.
Despite today’s move, and the 41% surge that the stock has seen in the last one month, shares are still down 34% from its 52-week high of ₹1,161.
