NTPC net up 22% on sales, costs

NTPC, the country’s largest power generator, reported a 22 per cent jump in net profit for the quarter ended December on lower raw material cost and improved capacity addition, which led to higher sales. The company posted net profit of Rs 2,597 crore during the third quarter compared with Rs 2,130 crore during the corresponding period last year.

“The profit growth is mainly attributed to higher generation due to capacity addition. We have commissioned a 500-Megawatt (Mw) unit at the Rihand project during the quarter. Overall, we added 3,820 Mw during 2012,” an official said.

Total income grew 1.7 per cent from Rs 15,542 crore in the third quarter last year to Rs 15,807 crore during the corresponding period this year.

For the nine months ended December, the net profit grew 24 per cent to Rs 8,238 crore. Total income grew five per cent to Rs 48,324 crore between October and December.

“The numbers are attributable to the 6.4 per cent dip in raw material cost q-o-q. Coal India’s supply has shown improvement, allowing NTPC to absorb coal cost. If the trend continues, share price will react positively,” Kishor P Ostwal, chairman of CNI Research, said.

NTPC has a current installed power generation capacity of 39,674 Mw.

The company has a target of adding 14,038 Mw capacity during the current Plan period.

This would require an investment exceeding Rs 70,000 crore over the five year period ending March 2017. The company’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 161.7, down 1.4 per cent as compared to previous close.