{"id":336886,"date":"2020-02-11T12:04:03","date_gmt":"2020-02-11T06:34:03","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=336886"},"modified":"2020-02-11T12:35:32","modified_gmt":"2020-02-11T07:05:32","slug":"ntpcs-q3-results-show-why-it-pays-to-be-a-regulated-business-model","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/ntpcs-q3-results-show-why-it-pays-to-be-a-regulated-business-model\/","title":{"rendered":"NTPC\u2019s Q3 results show why it pays to be a regulated business model"},"content":{"rendered":"<p>A steep fall in production can spell trouble for a manufacturing company, but it was not so for NTPC Ltd. Electricity generation dropped 13% last quarter. Yet, adjusted profit grew by an impressive 35% to \u20b92,953 crore.<\/p>\n<p>The growth in earnings can be explained by its regulated business model. Under this, NTPC is assured to earn a minimum return on equity. Even if the customer reduces electricity offtake, it is allowed to recover (some) costs, provided its plants are production-ready.<\/p>\n<p>The clause has come in handy with plant outages reducing last quarter. This lowered fixed-cost under-recoveries, which had dogged the company in FY19. Further, availability of the power plants improved, helping it receive better incentives. Power plant availability improved about three percentage points from the year-ago period to 88% last quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A steep fall in production can spell trouble for a manufacturing company, but it was not so for NTPC Ltd. Electricity generation dropped 13% last quarter. Yet, adjusted profit grew by an impressive 35% to \u20b92,953 crore. The growth in earnings can be explained by its regulated business model. Under this, NTPC is assured to earn a minimum return on equity. Even if the customer reduces electricity offtake, it is allowed to recover (some) costs, provided its plants are production-ready. The clause has come in handy with plant outages reducing last quarter. This lowered fixed-cost under-recoveries, which had dogged the [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139,130,237],"tags":[],"class_list":["post-336886","post","type-post","status-publish","format-standard","hentry","category-live-mint","category-newspapers","category-power-live-mint"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/336886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=336886"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/336886\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=336886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=336886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=336886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}