NTPC gains after Q4 PAT spurts 185% to Rs 4,649 cr

NTPC rose 2.60% to Rs 116.50 after the company's consolidated net profit surged 185.3% to Rs 4,649.49 crore on 0.9% slip in net sales to Rs 30,102.60 crore in Q4 March 2021 over Q4 March 2020.

Profit before tax skid 14.38% to Rs 4,017.72 crore in Q4 FY21 as against Rs 4,692.53 crore in Q4 FY20. The Q4 earnings were announced on Saturday, 19 June 2021.

NTPC in notes to account said it had created an additional tax provision amounting to Rs 2,661.47 crore during previous years as it proposed to settle all pending income tax disputes. During the year, the company decided to settle its pending disputes for three years under the Vivad se Vishwas Scheme. Accordingly, excess tax provision amounting to Rs 1,889.05 crore has been written back during the quarter ended March 2021.

NTPC Group's installed capacity rose 3,700 MW (mega-watt) to 65,810 MW as on 31 March 2021 over 62,110 MW as on 31 March 2020. Its commercial capacity increased by 3,364 MW to 64,490 MW as on 31 March 2021 as against 61,126 MW as on 31 March 2020.

Coal produced (from captive mines - commercial) grew 42.88% to 3.708 million metric tonnes (MMT) in Q4 March 2021 from 2.595 MMT in Q4 March 2020. Total coal suppy position declined 2.19% to 45.68 MMT in Q4 FY21 as compared to 47.86 MMT in Q4 FY20. Gas consumption tanked 59.42% to 1.12 million metric standard cubic meter per day (MMSCMD) in Q4 March 2021 over 2.76 MMSCMD.

During the financial year, NTPC's consolidated net profit jumped 25.77% to Rs 14,969.40 crore on 1.88% rise in revenue from operations to Rs 1,11,531.15 crore in FY 2021 over FY 2020.

The board of NTPC has approved the enhancement of borrowing limit of the company to Rs 2,25,000 crore from Rs 2,00,000 crore.

Meanwhile, the board has also recommended the final dividend of Rs 3.15 per equity share for the FY 2020-21.

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 2021, the Government of India held 51.10% stake held in NTPC.

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