NTPC’s PAT Up By 10.19%, Gives Rs 4 Dividend to Appease Government

Public Sector major and India’s largest power generating company with a capacity of 42454 MW posted a topline of Rs19554 crore during Q3 as against the total income of  Rs 16541 crore earned in the corresponding period last year, a decent growth of 18.22%. Company’s PAT also saw a robust growth of 10.19% during the period and reached Rs 2861.28 crore as against Rs 2596.76 crore clocked last year. 

Company’s bottom line has made a provision for one off items and if we exclude this then company’s PAT has increased by 20.41%. Company management has also in some sense bowed before the Finance Minister’s demand and recommended highest ever interim dividend of Rs 4, i.e. 40% of paid up equity capital. 

Employee expense of the company has increased by Rs 488 crore to Rs 1179.6 crore during the period. While on the nine month period company has clocked a total income of Rs 52,972.26 crore, the unaudited PAT is Rs. 7,881.20 crore. Though dividend will be paid on February 10, government will receive around Rs 2500 crore dividend from the company as it holds 75% stake in the company. Important to note that government is pressing for more dividends from the cash rich PSUs and NTPC was on the radar of the Finance Ministry. 

As far as increase in profitability is concerned, it is due to increase in Plant Availability Factor (PAF) for various projects of NTPC, as incentive will be received by the power plants on the basis of PAF. In the last quarter company has also commissioned Barh project of 660MW capacity, while it also hope to commission first hydro project in HP soon.