NTPC net rises 69%

Net profit stood at Rs 4,381.6 cr, compared with Rs 2,593.4 cr during the corresponding period last year

NTPC, India’s largest power generator, reported a 69 per cent jump in net profit for the quarter ended March, owing to the settlement of past dues of power sales. Net profit stood at Rs 4,381.6 crore, compared with Rs 2,593.4 crore during the corresponding period last year.

“The high profit growth is mainly on account of interest income towards settlement of dues of the erstwhile Delhi Electricity Supply Undertaking (DESU),” the company said. NTPC’s total income rose six per cent to Rs 17,349 crore from Rs 16,361.5 crore in the year-ago period. During the quarter, 1,500 Mw of fresh generation capacity was added, said a senior NTPC executive.

In February, the power ministry had asked the Delhi government to release NTPC payments towards DESU dues — Rs 835 crore as principal and Rs 1,684 crore as interest. “The provision for doubtful debt of the principal amount has been written back and the interest amount has been recognised as an exceptional item,” the company said.

The company disclosed Rs 2,531 crore of its coal purchase dues to Coal India (CIL) as contingent liability “with corresponding possible reimbursements from the beneficiaries (consumers)”.

For 2012-13, net profit rose 37 per cent to Rs 12,619.3 crore from Rs 9,223.7 crore in 2011-12. Total income in 2012-13 rose six per cent to Rs 68,775.5 crore, while fuel costs fell one per cent to Rs 42,827 crore.

Kishor P Ostwal, chairman of CNI Research, said, “I am bullish on the stock because of the recent power tariff hikes in states... It was expected the company’s coal costs would fall. The government is trying to ensure extra coal is available to the company. These factors will contribute significantly to growth.”

On Friday, the NTPC stock closed at Rs 155.1 on the BSE, down 0.8 per cent.