Fourth quarter results of power generation major NTPC has been hard hit by a rise in fuel costs and other expenses as well as a substantial reduction in other income. Rising fuel costs also has impacted full year results. For the quarter ended 31 March 2006, standalone net profits declined 31.7 per cent to Rs1,566.3 crore from Rs2,293.4 crore. Total standalone revenues increased marginally by 2 per cent to Rs7,914.6 crore from Rs7,768.3 crore for the previous year quarter.

Income from operations increased 13.45 per cent while other income declined substantially by 53.54 per cent.

Operating profits for the quarter declined 1.8 per cent while operating margins dropped to 24.12 per cent from 27.86 per cent for the pervious year quarter.

Fuel expenses for the quarter went up by 18.76 per cent while discounts on settlement with customers went up by 17.05 per cent. Staff costs increased 33.37 per cent while other expenses were higher by 19.35 per cent.

Interest expenses for the quarter increased 26.06 per cent and depreciation charges were higher by 6.24 per cent.

For the full year 2005-06, standalone net profits remained almost flat at Rs5,820.2 crore as compared to Rs5,807 crore for the previous year. Standalone revenues for the full year were higher by 12.56 per cent at Rs28,753 crore as against Rs25,546 crore.

Revenues from sale of electricity increased 15.86 per cent during the year while other income, mostly interest on investments, went down by 12.44 per cent.

Operating profits increase 5.75 per cent during the year while operating margins as a percentage of operating revenues declined to 24.55 per cent from 26.9 per cent.

The decline in operating margins was mostly on account of higher fuel costs, which increased 19.46 per cent. The company had faced shortage of coal during the previous year and had to import part of its requirements.

Discounts given to state electricity boards as part of one-time settlements increased 18.11 per cent to Rs804.7 crore from Rs681.3 crore for the previous year. Staff costs increased 9.61 per cent while other expenses went up by 28.98 per cent.

Interest costs for the year declined by 5.49 per cent while depreciation charges increased by 4.56 per cent.

Consolidated profits for the year 2005-06 increased very marginally to Rs5,840.8 crore from Rs5,828.6 crore for the previous year. Consolidated revenues increased 11.69 per cent to Rs29,612.4 crore from Rs26,512.5 crore.