NTPC Q2 net down 21% on lack of demand, rising fuel cost

NEW DELHI .  NTPC Ltd has posted a 21 per cent dip in net profit for the quarter ended September as a historic lack of demand from state utilities and a marginal rise in imported fuel cost took a toll on margins. The company registered a net profit of Rs 2,492 crore during the quarter as compared to Rs 3,142 crore during the same period last year.

 

“The decline in profit is a combination of a lot of factors. The demand from state distribution companies has come down. So, overall generation growth has been impacted. Also, the imported coal component in our coal use has gone up,” a senior executive from the company told Business Standard. The company has imported 8 million tonne (MT) coal against a target of 16 MT for the current fiscal.

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Total income declined from Rs 16,351 crore registered during the second quarter last financial year (2012-13) to Rs 16,415 crore in the quarter ended September. Net revenue from electricity sales, which accounts for 99 per cent of total income, dipped 0.9 per cent to Rs 16,272 crore as against Rs 16,119 crore in the corresponding quarter last fiscal year.

 

NTPC also informed that its unbilled amount to coal mining companies jumped 60 per cent from Rs 2,531 crore as on March 2013 to Rs 4,065 crore at the end of September quarter. The unbilled amount, shown as a contingent liability, is owing to a recent dispute over coal quality supplied by coal companies that is yet to be resolved  .  Press release.