NTPC Q4 Net Jumps 24% on Accounting Change

ENOUGH STEAM LEFT

State-run NTPC on Wednesday reported a 24% rise in its March quarter net profit, and said it would double capital expenditure in the current fiscal to boost generation capacity.
The power utility plans to double capital expenditure in the current fiscal to . 26,400 crore to add 4,320 mw generation capacity, chairman and managing director Arup Roy Choudhury told reporters here.
"The capital expenditure for the current financial year would be financed in the ratio 70:30. The equity portion would be met through internal accruals. We have an unutilised debt of . 20,540 crore. We would raise $500 million through euro bonds in May-June this year," Choudhury said.
The utility also plans to borrow from domestic banks and the Life Insurance Corporation of India.
NTPC's March quarter net profit provisionally rose 24% to . 2,505 crore from . 2,018 crore in the previous year. Provisional net sales for the quarter stood at . 14,488 crore, up 17.74% from the yearago period.
"The abnormal rise in profit in Q4 is mainly due to the change in accounting procedure," Choudhury said.
However, provisional net profit for 2010-11 was up only 1.12% at . 8,866 crore. Provisional net sales for the period rose 16.36% to . 53,721 crore, from . 46,169 crore in 2009-10.
"State electricity boards did not draw power though it was made available by us. This lack of demand led to lower electricity generation," director, finance, AK Singhal said.
NTPC, which is scouting for coal assets in Australia, Indonesia, South Africa and Mozambique, has a generation capacity of 34,194 mw. It is executing 15 power projects with a total capacity of 14,748 mw.
The utility spent . 12,818 crore for the 2,490 mw capacity added in the year ended March 2011.
The company estimates total coal requirement for 2011-12 will be about 162 million tonnes, of which 14 million tonnes may have to be imported. It has signed an agreement with State Trading Corp for 12 million tonnes and will import the remaining on its own. NTPC is also looking at executing projects in neighbouring countries Bangladesh, Sri Lanka and Bhutan.

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