NTPC Q2FY21 profit rises 7% to Rs 3,505 crore

By: |
November 3, 2020 2:45 AM

It paid Rs 509 crore in taxes during the quarter, about 54% lower than the same period last year. Lower taxes also offset the adverse impact of the Rs 560.4-crore rebate it offered to state-run power distribution companies under the direction of the Union power ministry due to the coronavirus crisis.

NTPCNTPC’s total income increased from Rs 23,658 crore in the previous year to Rs 26,023 crore.

State-owned NTPC reported a 7.4% year-on-year (y-o-y) increase in its standalone net profit to Rs 3,504.8 crore in the three months ended September mainly on lower tax expenses.

It paid Rs 509 crore in taxes during the quarter, about 54% lower than the same period last year. Lower taxes also offset the adverse impact of the Rs 560.4-crore rebate it offered to state-run power distribution companies under the direction of the Union power ministry due to the coronavirus crisis.

NTPC revenue increased 9.9% to Rs 26,023 crore in Q2 as the power company sold 62.9 billion units of electricity in the period, 10.7% higher than the corresponding period last fiscal. NTPC’s Ebitda was Rs 7,183 crore, lower than analysts’ expectations, mainly on higher ‘other expenses’.

The company’s board also approved a buyback of up to 19.79 crore equity shares at Rs 115 for an amount up to Rs 2,275.75 crore as part of capital restructuring.

NTPC coal stations’ average plant availability factor improved 775 basis points y-o-y to 91.8% on higher coal receipt, which lowered its fixed cost under-recoveries. Fixed cost represents pre-determined expenditure components, including debt service obligation and risk-free returns. Power plants are contractually entitled to receive fixed costs even when buyers do not procure electricity from the units. However, the plants need to display a minimum PAF of 85% to claim the fixed costs.

NTPC’s power plants received 38.5 million tonne (MT) coal, 4.6% more than what was supplied in Q2FY20. While its own newly commissioned captive mines produced only 0.8 MT of the fuel in the quarter, thanks to better supply from Coal India, NTPC’s coal imports also fell 76% y-o-y to 0.2 MT in the quarter.

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