NTPC Q1 Results: Profit Falls 5.1% Due To Rebates Offered To Power Discoms
Emissions billow from smokestacks at the NTPC Ltd. Badarpur coal-fired power plant as the sun sets in Badarpur, Delhi, India (Photographer: Kuni Takahashi/Bloomberg)  

NTPC Q1 Results: Profit Falls 5.1% Due To Rebates Offered To Power Discoms

Net profit of India’s largest power utility fell during the June quarter due to a rebate provided to state power distribution companies.

Net profit of NTPC Ltd. fell 5.1% year-on-year to Rs 2,470 crore in the April-June period, according to an exchange filing on Friday. That compares with the Rs 1,995-crore consensus estimate of analysts tracked by Bloomberg.

The company posted an exceptional loss of Rs 803 crore due to the rebate offered to power discoms under the Atmanirbhar Bharat Special Economic and Comprehensive package, the filing said. But the decline in bottom line was cushioned by a 74% rise in other income at Rs 567.5 crore.

  • The company's revenue declined 3.1% over the year ago to Rs 23,453.5 crore— against the Rs 22,922-crore estimate.
  • Lower generation and volumes impacted the company's revenue but was partly offset by lower fuel costs, which declined 17% over the year-ago period.
  • Earnings before interest, tax, depreciation and amortisation rose 20% year-on-year to Rs 7,745 crore. Analysts had pegged the operating profit at Rs 6,028 crore.
  • Ebitda margin expanded to 33% from 26.7%.

Segment Highlights (Year-On-Year)

  • Core generation segment revenue down 2.4% to Rs 22,958.8 crore.
  • A thermal unit of 660 megawatt at Khargone commercialised this quarter.
  • Coal PLF at 58.2% against 73.9%.
  • Gross generation down 12% to 60.19 billion units.

On Friday, NTPC shares rose 1.38% to Rs 88.40 apiece on the BSE while the benchmark Sensex fell 1.13% to end the day at 37,877.34 points. The quarterly results were declared during market hours.

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