NTPC Q4 net profit drops 32 per cent

Our Corporate Bureau
01 June 2006

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.