NTPC likely to generate higher operating profit in FY20: Fitch Ratings
State-owned power producer NTPC is expected to generate higher operating profits in the current fiscal, says a report.
“It expects NTPC Ltd (BBB-/Stable) to generate higher operating profits in the financial year ending March 2020 (FY20), partly driven by improvement in availability factors across most of its power projects, resulting in lower under-recoveries,” Fitch Ratings in the report said.
The better availability will be based on higher coal procurement from the group’s new captive mines, imports and Coal India Ltd.
“An accident at the 1,550 MW Unchahar power project and the shutdown of the 705 MW Badarpur power project in FY19 resulted in under-recoveries, the difference between fixed costs and capacity payments of Rs 4.7 billion,” Fitch said.
