NTPC provisional net up 15%

BS 200 SCORECARD

NTPC reported a provisional net profit of Rs 5,300 crore in 2004-05, up by a higher-than-expected 15 per cent year on year. Its net revenues rose by 9 per cent.

The company generated 159 billion units, a 7 per cent volume growth. The net profit includes a write back of provisions worth Rs 6.2 billion. The profit also includes a charge of Rs 680 crore towards rebate on one-time settlements.

NTPC's realisations have improved by 2 per cent, company officials said in a conference call with analysts. The company plans to import 2.1 million tonne of coal to meet any possible deficit in coal availability.

According to the company's management, the new tariff policy can have far reaching consequences on the company. For instance, a cap of return on investments as against return on equity would imply better profitability for NTPC as it has a strong balance sheet.