1. NTPC Q4 net falls 28% on higher impairment costs

NTPC Q4 net falls 28% on higher impairment costs

NTPC on Monday reported a net profit of Rs 1,995.32 crore, down 28.4% year-on year, for the three months to March. Revenues for Q4 FY17 came in at Rs 20,886.85 crore, up 11.4 % y-o-y.

By: | Published: May 30, 2017 7:25 AM
NTPC, NTPC Q4 net, Ratnagiri Gas and Power, National Company Law Tribunal The state-owned power generator said it had incurred an one-time impairment loss of Rs 782.95 crore in the March quarter on its investment in the equity shares of Ratnagiri Gas and Power. (Image: PTI)

NTPC on Monday reported a net profit of Rs 1,995.32 crore, down 28.4% year-on year, for the three months to March. Revenues for Q4 FY17 came in at Rs 20,886.85 crore, up 11.4 % y-o-y. The earnings before interest, tax, depreciation and amortisation (ebitda) remained almost flat at Rs 5,463 crore, while the ebitda margin fell by three percentage points to 26.7%. The state-owned power generator said it had incurred an one-time impairment loss of Rs 782.95 crore in the March quarter on its investment in the equity shares of Ratnagiri Gas and Power (RGPPL).

The company’s employee benefits expenses shot up by more than 79% to Rs 1,637.7 crore in the March quarter as more employees retired in this period. The company with a total capacity of 51,000 MW currently has around 23,000 employees.

NTPC had invested Rs 974.3 crore in RGPPL, which was set up in 2005 to take over and revive the assets of the beleagured Dabhol power project. RGPPL, where NTPC holds a 25.51% stake, is promoted by NTPC and GAIL (India). According to the the proposed demerger scheme of RGPPL, NTPC would gain control of the1,967 MW power plant and GAIL would own its LNG terminal.

NTPC expects to recover Rs 191.35 crores after the proposed demerger, which is awaiting the approval of the National Company Law Tribunal. NTPC’s consolidated revenue in FY17 was Rs 83,047.64 crore, a rise of about 12%. The profit after tax for FY17 dipped by 2% to Rs 10,501.1 crore. The country’s largest power generator sold 59.6 billion units (BU) in the quarter, a rise of 2.83%.

It sold 233.6 BU in the year ended March 31, 2017, a rise of 3.86%. The company expanded its installed capacity by 3,845 MW in the financial year, of which 760 MW was solar capacity. Even though demand for power remains muted across the country, the average plant load factor at NTPC coal stations in FY17 was 78.59%, as against the national average of 59.88%. NTPC’s average power tariff in 2016-17 was Rs 3.30/unit , higher than in 2015-16.

In line with the government’s agenda to minimise the reliability on imported coal for power generation, NTPC consumed only 1.03 million tonnes of imported coal in FY17, which is 89% lower than the year-ago period. NTPC’s board has recommended 21.7% final dividend (Rs 2.17 per share) for FY17. This is the 24th consecutive year for payment of dividend by the company.

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