NHPC posts 28% rise in profit at Rs 2,772 cr for FY12

High returns on investment, low financial costs, rise in other income, consultancy services led to rise in profit

Country's largest hydro power producer NHPC today reported 28% jump in net profit for the financial year ended March 31, 2012, at Rs 2,772 crore.

The company had posted a net profit of Rs 2,167 crore during the previous financial year (2010-11).

"The increased annual profit was mainly on account of higher returns on investment, lower financial costs and rise in other income," NHPC Chairman and Managing Director A B L Srivastava said while announcing the company's annual results.

"There was also higher income from consulting services," Srivastava said.

The company registered a turnover of Rs 5,510 crore as against Rs 4,046 crore in the previous fiscal.

NHPC plans to commission 1,200 MW of capacity during the current financial year (2012-13), which is a spill-over from the last fiscal's (2011-12) target.

"No fresh capacity over and above the spill-over from last fiscal would be added this year," he said.

This 1,200 MW capacity include Chutak, Nimoo Bazgo (in Jammu & Kashmir), Parbati (Himachal Pradesh) etc.

Meanwhile, he said that poor financial health of power distribution companies (discoms) resulted in non-payment of dues to NHPC.

As on May 23, the company had to receive Rs 1,622 crore from various discoms. Out of the total amount, Rs 444 crore is considered as possible default since it was not paid within the stipulated time of 60 days.

"We have issued notices (for non-payment of dues) to discoms in three states including Jharkhand," he said.

Commenting on the progress of its Subansiri project in Assam, he said, "About 50% of the work on the project has been done. We are trying to resolve the matter, once it is done the project would be commissioned in the next four years."

The work on NHPC's Subansiri project was stalled in December 2011 amidst fear that the construction will cast an impact on downstream residents in lower Assam.

NHPC reported 26% growth in profit for the fourth quarter (January-March) at Rs 802 crore against Rs 638 crore in the corresponding period of the previous fiscal.