NTPC gains from pre-poll thrust to coal supple
State-owned power generator NTPC gained from improved coal supply to its power plants in the pre-election season, as it was able to reduce its traditional under-recoveries stemming from fuel shortages. The company’s fixed cost under-recoveries, which increases with fuel-related uncertainties, were at Rs 800 crore in FY19, 43% lower than FY18, as it received more fuel from Coal India and increased production from its own captive mines.
Under-recoveries due to coal shortage itself in FY19 was Rs 250 crore, down 69%.
NTPC reported a net profit of `11,750 crore in FY19 on a standalone basis, registering a year-on-year (y-o-y) increase of 13.6% and its revenue grew 8.2% to Rs 92,179.6. The company’s Ebitda (earnings before interest, tax, depreciation and amortisation) increased 5.1% to Rs 22,771.5 crore, though its Ebitda margin went down 80 basis points y-o-y to 25.2% in the fiscal.
