 "NHPC reports over 13% decline in net profit at Rs 855 cr in June quarter")
State-owned hydro power giant NHPC on Monday reported over 13 per cent dip in its consolidated net profit to Rs 855.49 crore for the quarter ending June due to a rebate of Rs 185 crore given to discoms in view of COVID-19 situation.
Its consolidated net profit was Rs 989.27 crore in the quarter ended on June 30, 2019, a BSE filing stated.
Total income for the quarter under review rose marginally to Rs 2,914.02 crore from Rs 2,754.48 in the same period of last year.
About the COVID-19 situation, NHPC stated, "The company's primary source of revenue is from (power) generation and sale of hydroelectricity. During the outbreak of COVID-19, the Government of India and State Governments have declared lockdown which have affected business in general."
The company also stated that no material impact of COVID-19 on the financial performance of the company, including interalia the carrying value of various current and non-current assets or the ability to service the debt of the company, is expected to arise.
However, it said that in line with the directions of the Ministry of Power (issued) on 15th & 16th May 2020, the company has given a one-time rebate of Rs 185 crore to discoms and Power Departments of States/ Union territories for passing on to ultimate consumers on account of COVID-19 pandemic.
The rebate has been presented as an "exceptional item" in the Statement of Financial Results, it added.