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NTPC Q4 net drops 29% to `3,093.54 crore as fuel costs rise

LiveMint logoLiveMint 15-05-2014 PTI

New Delhi: India’s largest thermal power producer NTPC Ltd on Thursday reported over 29% drop for the fourth quarter after fuel costs surged. The company’s net profit fell to `3,093.54 crore in the three months ended 31 March.

Earnings in the same period last financial year were higher at `4,381.61 crore on account of recovery of some dues.

Fuel costs rocketed to `14,434.11 crore in the March quarter compared to `10,389.69 crore in the year-ago period.

Total income of the company rose to `78,921.66 crore from `72,098.09 crore in the same period last year.

NTPC has set a capital expenditure target of `22,400 crore during the current fiscal. The company’s capital expenditure during the last fiscal was `21,705 crore.

The company, which generated 233 billion units of electricity in 2013-14, plans to produce 240 billion units during the current fiscal. Megawatt (MW) refers to generation capacity while million units indicates the amount of power or energy produced. One MW can produce 1,000 units of electricity in one hour.

NTPC currently generates over 43,000 MW and has plans to add 14,038 MW by 2017. “We have already done 6,000 MW of the targeted capacity and are on track to achieve our goal,” NTPC chairman and managing director (CMD) Arup Roy Choudhury said.

The board of directors of the company has recommended a dividend of `1.75 per equity share for the financial year 2013-14. The company this week cancelled a mine development and operation contract worth `23,000 crore with Thiess Minecs India due to delays in development and operation of the Pakri-Barwadih coal block.

“The production plan of the Pakri Barwadih mines has taken a beating but we wanted to send a message across to the mine developers that the work cannot be taken lightly,” Choudhury told reporters in New Delhi.

NTPC has been allotted seven coal blocks plans to start production from the Chhatti Bariatu mines in Jharkhand during the current fiscal.

Shares of NTPC rose 2.95% to close at `129.25 apiece on BSE.

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