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Power generator NTPC Ltd has posted a marginal 1.1% growth in net profit for the quarter ended June. The company recorded a net profit of Rs 2,527 crore as compared to Rs 2,498.6 crore in the corresponding quarter last financial year. The dip in profit came despite an over 6% decline in expenses at Rs 12,289 crore during the three month period. Fuel cost, which accounts for a bulk of the total expenditure, came down 11% to Rs 9,425 crore.
'NTPC's first quarter Adjusted Profit after Tax of Rs 23.02 billion (Rs 2,302 crore) was below our expectation of Rs 23.86 billion (Rs 2,386 crore), mainly due to other income being below estimate by Rs 860 million (Rs 86 crore),” Emkay Global Financial Services said in a note. Other income came down 76% to Rs 48 crore.
Total income of the company declined 2.8% to Rs 16,358.7 crore during the quarter as compared to Rs 16,844 crore in the same quarter last year. Income from power sales dipped 2.1% to Rs 15,612 crore.
NTPC has considered an amount of Rs 3,523 crore -- outstanding payments yet to be made to its coal supplier Coal India Ltd -- as 'contingent liability” to be recovered from consumers, the company said in a filing to the Bombay Stock Exchange (BSE).
Reverses in Jharkhand
The company today listed out various difficulties being faced in four of its captive mining projects under implementation in mineral-rich Jharkhand. 'We may have to contemplate moving out of Jharkhand given the extent of law and order issues there,” a senior NTPC executive said.
The power generator was allocated four captive mines – Pakri Barwadih, Kerandari, Chatti Bariatu and Chatti bariatu (South) – in Jharkhand to fire its local power plants. The executive said local law and order-related have demoralized its staff.
The company said it is the only company, among 25 firms with mining operations in Jharkhand, which is actively pursuing its mining programme. Among the 25 firms, it listed private miners including Reliance Power; GVK, Jaiswal Neco, Nilachal Ispat and Bajrang Ispat.
The company’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 137.9, down 2.7% as compared to previous close.
