NTPC net flat, may scrap Jharkhand projects

Power generator NTPC Ltd has posted a marginal 1.1 per cent growth in net profit for the quarter ended June.

The company recorded a net profit of Rs 2,527 crore against Rs 2,498.6 crore in the year-ago period on lower expenses at Rs 12,289 crore during the quarter. Fuel cost, which accounts for a bulk of the expenditure, came down 11 per cent to Rs 9,425 crore. Emkay Global Financial Services in a note said: “NTPC’s first quarter adjusted profit after tax of Rs 23.02 billion (Rs 2,302 crore) was below our expectation of Rs 23.9 billion (Rs 2,386 crore), mainly due to other income being below estimate by Rs 860 million (Rs 86 crore).” Other income came down 76 per cent to Rs 48 crore.   

Total income of the company declined 2.8 per cent to Rs 16,358.7 crore during the quarter against Rs 16,844 crore in the same quarter last financial year. Income from power sales dipped 2.1 per cent to Rs 15,612 crore. NTPC has considered an amount of Rs 3,523 crore — outstanding payments to Coal India — as “contingent liability” to be recovered from consumers, it said in a filing to BSE.    

The company on Tuesday listed difficulties faced in four of its captive mining projects under way in mineral-rich Jharkhand. A senior executive said: “We might have to contemplate moving out of Jharkhand, given the extent of law and order issues there.” The executive said law and order-related disturbances had demoralised the staff.  

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.