State-run NTPC posted a jump of around 40% in net profit to Rs 2,898 crore for the July-September quarter on a 7% increase in revenue to Rs 17,898 crore, primarily because of a substantial tax gain of Rs 730 crore but also aided by a flat growth in fuel costs. NTPC’s net profit had fallen by 3% in Q1 of this fiscal, on a 7% drop in total income.
The income growth was below market expectations. The NTPC stock closed at Rs 127.70 on Thursday, down 1.35%
Ebitda, however, grew over 25% year-on-year to Rs 3,855 crore in the quarter.
NTPC’s margins have a taken a beating in recent quarters owing to the new tariff regulation approved by Central Electricity Regulatory Authority that came into from April 1, 2014. The incentives on power generation under the new rules are based on plant load factor as opposed to the earlier norm of readiness of the plant to run the installed capacity, which has proved to be a dampener for the PSU.
The Delhi HC is hearing a petition filed by the company against the new rules.
Fuel expenses stood at Rs 11,540 crore for the second quarter of this fiscal against Rs 11,439 crore a year earlier.
Gross electricity generation in the second quarter of the current fiscal grew 60.15 billion units (BU), an increase of 8.5% over the corresponding period last year. In the same period, the plant load factor — a measure of capacity utilisation — grew by 4 percentage points to 77% for the company’s coal-based generating units while the PLF for its gas-based plants fell 7 percentage points to 25%.
The company said it commissioned its 200 MW Koldam hydropower plant during the quarter. It also paid a final dividend of Rs1.75 per share during the quarter for FY15. NTPC’s installed capacity has grown by 2,420 MW to 45,548 MW since Q2FY15.
On a half-year basis, the unaudited total income was Rs 35,497 crore during April-September this fiscal compared with Rs 36,137 crore reported a year ago. The net profit was up 18% at Rs 5,034 crore in the April-September period this fiscal versus Rs 4,273 crore a year ago.