NTPC Q2 net falls 17 percent on change in tariff rules

State-run NTPC Friday reported almost a 17 percent drop in second quarter net profit at Rs.2,071.63 crore, compared to the Rs.2,492.90 crore in the same quarter of 2013-14, due to changes in tariff regulations.

The company's total income from operations during the quarter ended September increased to Rs.16,736.63 crore from Rs.16,448.90 crore in the like period of the last fiscal.

NTPC's other income in the quarter under review fell to Rs.530.69 crore, as against Rs.627.19 crore in the corresponding period of the last fiscal.

Fuel costs in the quarter went up to Rs.11,439.33 crore from Rs.10,139.25 crore during the same period of 2013-14.

In a filing to the stock exchanges, NTPC said the decline in standalone net profit is mainly on account of changes in tariff regulations.

The regulator, Central Electricity Regulatory Commission (CERC), had in July rejected NTPC's petition seeking changes in the tariff norms for the period 2014-19. The company had represented that its generation incentives should be linked to the actual power produced instead of the supply.

NTPC's gross generation for the quarter was 55.421 Billion Units (BUs) as against 54.519 BUs in corresponding period of the previous year.

In September, the company signed an agreement with the Andhra Pradesh government to develop 1,000 MW solar power projects at different sites in the state in a phased manner.