India’s largest power producer NTPC Ltd on Wednesday reported a flat growth in net profit at R8,886 crore for the year ended March 2011 on the back of state electricity boards buying less power from the grid. The company had registered a net profit of R8,728 crore during fiscal year 2009-10.
“We made the power plants available, but state electricity boards did not draw power from those projects. This led to less generation of power and therefore less revenues,” said Arup Roy Choudhury, chairman and managing director, NTPC.
Net sales increased 16.4% to R53,721 crore during 2010-11 against R46,169 crore in 2009-10.
The company’s net sales grew 17.7% to R14,488 crore in the fourth quarter of 2010-11 compared to R12,305 crore in the year-ago period. NTPC generated 220.5 billion units of electricity in 2010-11 against 218.84 billion units in 2009-10.
The power producer has doubled its capital expenditure for the current fiscal year to R26,400 crore from R12,818 crore in 2009-10. It will raise about $500 million through euro bonds next month.