NTPC announces weak Q4 result

NTPC reported a 70.5% drop in consolidated net profit to Rs 1523.77 crore on a 27% jump in net sales to Rs 30,201.08 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax stood at Rs 6,471.89 crore in Q4 March 2020 as against a pre tax loss of Rs 2,303.80 crore posted in Q4 March 2019. The result was announced on Saturday, 27 June 2020.

Profitability was significantly dented on the back of higher tax provisions. NTPC's total tax expenses in Q4 March 2020 stood at Rs 4,948.12 crore as against a tax rebate of Rs 7,465.19 crore received in Q4 March 2019.

NTPC group's total installed capacity increased to 62,110 MW as on 31 March 2020 as against 55,126 MW as on 31 March 2019. The group's commercial capacity increased by 8,260 MW to 61,126 as on 31 March 2020 compared with 52,866 MW as on 31 March 2019.

On a consolidated basis, NTPC's net profit declined 15.5% to Rs 11,600.23 crore in fiscal year ended 31 March 2020 (FY20) from Rs 13,736.68 crore in FY19. Net sales stood at Rs 1,09,464.04 crore in FY20, rising 9.2% from FY19.

Meanwhile, the company has recommended final dividend of Rs 2.65 per equity share for the financial year 2019-20. Shares of NTPC were trading 0.52% higher at Rs 97.10 on BSE.

NTPC is a maharatna company operating in the power generation business. The principal business activity of the firm is electric power generation through coal based thermal power plants. It also engages in the business of generation of electricity from hydro and renewable energy sources.

As of 31 March 2020, the Government of India held 51.02% in the PSU company.

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