Business Standard reported that NTPC Ltd 30% jump in net profit for the September quarter on the back of improved capacity addition and decreased raw material costs, leading to higher generation.

The company posted net profit of INR 3,142 crore between July and September, as compared to INR 2,424 crore during the same period last year.

A senior official from the company said that “The high profit growth is attributed to high addition of generation capacity. A 660 MW unit at Sipat and a 550 MW unit of Simhadri unit have been commissioned in the Q2.”

A senior official said that “In the H1 of the current fiscal, NTPC has declared 2,820 MW capacity under commercial operation. This is the highest ever in a period of 6 months.”

For the H1 ended September, the company’s profit after tax grew 25% to INR 5,641 crore as against INR 4,499 crore during the H1 last fiscal. It total income of the company also grew 8% to INR 34,012 crore between April and September this year.

Mr Kishor P Ostwal chairman of Mumbai based research house CNI Research said that “NTPC’s brilliant numbers including the high profit growth is largely attributable to the 15% decline in raw material cost QoQ. Coal India’s supply to the company has shown improvement, allowing NTPC to absorb coal cost favorably. If this trend continues in the next quarter, share price will definitely react positively.”

NTPC has a current installed power generation capacity of 39,100 MW. The company has a target of adding another 25,000 MW capacity over the 5 year period ending March 2017, by spending INR 155,000 crore including expenditure towards developing coal mines.

Source - Business Standard

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