India’s largest power producer, NTPC Ltd on Tuesday announced a marginal 1% rise in net profit at Rs 2,527.02 crore in the first quarter of the current financial year against Rs 2,498.67 crore in the same period a year ago.
NTPC’s total income operations dropped to Rs 15,661.85 crore in the latest June quarter from Rs 16,165.95 crore in the same period a year ago.
However, lower expenses helped the company to report a marginally higher quarterly net profit.
In the 2013 June quarter, total expenses of the company fell to Rs 12,289.94 crore compared with Rs 13,092.66 crore last year. Meanwhile, the variation related to coal prices on gross calorific value (GCV) basis, worth about Rs 3,523.18 crore at the end of June this year has been considered as “contingent liability”.
“Pending resolution of the issue, difference between the amount billed by the coal companies and the amount admitted by the company amounting to Rs 3,52,318 lakh up to June 30, 2013 has been considered as contingency liability with corresponding possible reimbursements from the beneficiaries,” NTPC said.
From December 2011, the grading and pricing of non-coking coal was changed to GCV basis from earlier useful heat value (UHV) system.