NTPC misses output target, to optimise in FY13

NTPC Ltd has missed it capacity addition target as coal shortage was a major turn-off for the company during the year. The company exited financial year 2012 with 37,014 megawatt (MW) capacity with a spillover of 2016 MW to the current financial year.

The company could add around 2,820 megawatt (MW) capacities , instead of 4,980MW which it had aimed earlier."We aim to add around 4160 MW capacity in FY13, " said A.K Singhal, finance director, NTPC in an earnings call.

He said,. "Our plant availability factor or PAF was around 94.71% during the March quarter as against 85.26% YoY."

However, PAF of coal based projects enhanced as availability of fuel improved a bit during the March quarter, he says.

Of the 37,014 MW installed capacities, 28,695 MW comes from coal based projects at NTPC.

PAF of a plant is the maximum time that it can produce electricity over a given period and is mainly linked to fuel availability. Higher the availability of fuel, better will be the PAF.

Even analysts say that the entire power sector is grappling with fuel shortage issues and NTPC cannot be looked at in isolation. An analyst said, "There are various reasons like coal shortage and delays in feasibility study or environment clearances that have hampered capacity additional targets for NTPC. Had there not been coal shortage, the company would have added atleast 4,000 MW capacity in FY12."

Other brokerages find NTPC better placed then its peers because it has managed to source its coal requirement with relative ease, partly assisted by the preferential status accorded to it by domestic coal supplier Coal India.

Yesterday, NTPC Ltd has reported a 6.8% decline in the March quarter net profit at Rs 2593 crore,YoY as fuel shortage impacted fixed cost recovery. Sales, however grew 2.4% to Rs 16362 crore, YoY

For FY12, the company has posted consolidated net profit rose 5% to Rs 9814 crore YoY. Consolidated total income increased 10.74% to Rs 65893 crore YoY.