NTPC reports 14% rise in FY20 pre-tax profit
NTPC, the country’s largest power generating company, registered a 14.15 per cent rise in pre-tax profit in FY20 at ~14,465.92 crore. The stateowned firm had posted a profit before tax (PBT) of ~12,672.52 crore in FY19.
In the fourth quarter of FY20, PBT increased 24 per cent to ~4,383.77 crore. Total income of the company in Q4 was ~28,278.75 crore, while for the entire financial year, it was ~1 trillion — a 9 per cent increase over FY19.
Barring three months, power demand saw a contraction in FY20. This impacted the gross power generation and plant load factor (PLF), or operating ratio, of NTPC. Gross power generation fell 5.4 per cent year-on-year, while PLF registered a decline of 11.06 per cent.
In a separate notice to the exchanges on the ‘impact of Covid-19’, NTPC said the demand for power would continue to be low in the short term. “The company has ensured the availability of its power plants to generate power and has continued to supply power during the lockdown. However, in the short term, the demand of power is expected to be lower and accordingly, the company may have to operate its power at lower load factor. However, as per the regulatory framework of business, this would not have a significant impact on profitability,” said the notice.
As part of the Atmanirbhar package for economic revival, NTPC was directed by the Centre to defer capacity charges to the power distribution companies. NTPC, in its disclosure, said it has deferred capacity charges of ~2,064 crore to discoms, “to be payable without interest after the end of the lockdown in three equal monthly instalments”.
It also offered a rebate of ~1,363 crore on the capacity charges billed during the lockdown to discoms in FY21.
“The above amounts are provisional and may vary due to reconciliation of related data. The firm believes the impact will be short term. Moreover, the above referred economic and comprehensive package is expected to improve the realisation of the firm against the outstanding dues of discoms due to liquidity infusion,” NTPC said.