The March-quarter earnings of state-run hydropower producer NHPC Ltd would have been disappointing had it not been for higher other income.
On a standalone basis, NHPC’s hydropower generation declined 25% on a year-on-year (y-o-y) basis to 2,946 mega units (MUs) for Q4FY21.
Power generation was hit by low water flow at most of the company’s plants. But thanks to a late payment surcharge of ₹330 crore, other income rose 13% y-o-y.
Consequently, net profit rose about 6% y-o-y to ₹404 crore in Q4FY21.
While NHPC has managed to sail through the March quarter, elevated receivables remained a pain point. At the end of FY21, the company’s receivables narrowed to ₹3,206 crore from ₹3,585 crore in the previous fiscal, but trade receivable days remained high at around 140 days.
