India’s largest power producer NTPC Limited on October 28 reported a consolidated profit after tax (PAT) of Rs 3,691 crore for the quarter ended September 31 (Q2FY22), thus registering a growth of 6 percent from Rs 3,495 crore reported in the same quarter last year and by 7 percent from Rs. 3,444 crore reported in the June'21 quarter.
Adjusting for the exceptional items of Rs 670 crore last year, the adjusted profit for the same period last year would have been higher at Rs 4,165 crore.
The consolidated revenue was higher by 17 percent at Rs 32,404 crore, compared to Rs 27,708 crore in September 2020 quarter, and higher by 8 percent from Rs 29,888 crore in the previous quarter.
Higher generation backed by the commercialisation of new capacities and strong demand amidst coal shortage helped the company post higher revenues.
The company has increased its consolidated installed capacity by 3,990 MW during the first half of this year from 62,910 MW in September 2021 to 66,900 in this quarter. Of this, it commissioned 3,830 MW thermal power capacity and discontinued its thermal plant of 460 MW at Talcher. 320 MW of Solar Plants and 300 MW hydroelectricity plants were also commissioned in the first half.
The company added 4,540 MW of commercial capacity in the first half, taking it to 66,650 MW from 62,110 MW.
The gross generation during the quarter (including solar and hydro) increased by 10.6 percent y-o-y to 74.81 billion units (BU) from 67.67 BU and by 4.27 percent q-o-q from 71.75 BU.
A similar increase was witnessed in the commercial generation which improved by 10.13 percent y-o-y to 74.37 BU from 67.53 BU last year.
The shortage of coal that has been witnessed across countries pushed the company towards coal from its own mines. The company produced 2.02 million metric tonnes (MMT) more coal in this quarter from 0.77 MMT produced last year. On a quarterly basis, the coal production was more by 0.33 MMT.
The fuel bill for the company increased significantly by 31 percent y-o-y due to rising prices of coal and gas. The q-o-q increase was 17 percent.
Fuel cost as a percentage of revenue increased 500 bps y-o-y to 55 percent and by 400 bps on a quarterly basis.
Plant Availability Factor (PAF)
The company witnessed a reduction in PAF in the quarter compared to last year in both coal and gas plants. Coal PAF was down 6.47 percent and Gas PAF was down 8.67. Hydro PAF was flat. On a quarterly basis, coal PAF reduced by 8.32 percent while Gas PAF saw a decline of 15.4 percent.
The average tariff for the first half of this year came in at Rs 3.82 compared to Rs 3.86 in the first half of last year.The stock closed at Rs 137.35 today, down Rs 3.95 (-2.80 percent) from its previous day’s close. It has generated 56 percent returns over the last one year, it is up 38 percent in this financial year and 17 percent up in the past three months.