Country's largest power producer NTPC (National Thermal Power Corporation) today posted a marginal rise in net profit at Rs 2,527.02 crore in the first quarter ended June 30, 2013, even as total income declined. The state-run major had a net profit of Rs 2,498.67 crore in the year-ago period. NTPC's total income operations dropped to Rs 15,661.85 crore in the latest June quarter from Rs 16,165.95 crore in the same period a year ago, it said in a regulatory filing.
However, lower expenses helped the company to report a marginally higher quarterly net profit. In the 2013 June quarter, total expenses of the company fell to Rs 12,289.94 crore as compared to Rs 13,092.66 crore in the year-ago period. Meanwhile, the variation related to coal prices on Gross Calorific Value (GCV) basis, worth about Rs 3,523.18 crore at the end of June this year has been considered as "contingent liability".
"Pending resolution of the issue, difference between the amount billed by the coal companies and the amount admitted by the company amounting to Rs 3,52,318 lakh up to June 30, 2013 has been considered as contingency liability with corresponding possible reimbursements from the beneficiaries," NTPC said.
From December 2011, the grading and pricing of non-coking coal was changed to GCV basis from earlier Useful Heat Value (UHV) system. The board had approved payments to coal companies on GCV basis besides directing the company to frame modalities for implementation of GCV-based grading system. Subsequently, modalities with regard to joint sampling and testing of coal at mine end or station end future payments to coal companies were worked out.
NTPC said the modalities were communicated to the coal companies in October/November 2012 and thereafter released payments on the basis of GCV system. However, the company began to notice variations in GCV of coal supplied and received at power stations. "The company regularly informed coal companies about this variation which has not been accepted them. The issue has been taken up with the coal companies directly and through the Ministry of Power and Ministry of Coal for resolution," the filing said.
In late afternoon trade, NTPC shares were down more than two per cent at Rs 138.60 on the BSE.