NTPC profit dips due to new rate regime

The company reports 13% fall in Q1 net profit to Rs 2,201 cr

NTPC, the largest thermal power producer in the country, registered a decline of 13 per cent in profit, owing to new tariff regulation.

The unaudited profit after tax stood at Rs 2,201 crore for the first quarter of financial year 2014-15, compared to Rs 2,527 crore in the corresponding quarter of the previous year.

The company’s stock fell by 3.01 per cent corresponding to announcement of its first quarter results. The company cited the decline in profit is due to the implementation of new rate guidelines as suggested by central electricity regulatory commission.In a statement issued on Thursday, NTPC said under the new regime, almost 53 per cent of energy sent out has negative contribution on the financial incentives.

The new tariff guidelines expect the power producers to avoid any retrospective adjustment, including any change in the projected capital expenditure.

NTPC gross power generation for the quarter grew to 63 billion units from 57 billion units of previous corresponding quarter, up by 10.7 per cent.

NTPC currently has an installed capacity of 43,128 Mw. Its coal based power stations clocked plant load factor of 84.29 per cent, an increase of 5.2 per cent, compared to the previous corresponding quarter.

The unaudited total income increased by 15.2 per cent to Rs 18,885 crore in the first quarter of current financial year, in comparison to the Rs 16,391 crore reported for the corresponding quarter in the previous year.
POWER CUT

Rs 2,201 cr: Net profit reported during the April-June quarter. The company reported net profit of 2,527.02 cr in the same quarter last financial year

Rs 3,268 cr: Ebitda during the quarter, with margins at 18.1 per cent