NTPC Profit Dips as Tax Costs Jump, Competition Intensifies
NTPC Ltd.’s fourth-quarter profit fell 7.7 percent as India’s biggest power producer faced competition from rivals and taxes increased.
Profit for the three months ended March 31 decreased to 27.2 billion rupees ($405 million) from 29.4 billion rupees a year ago, the company said in a stock exchange filing. That beat an average profit forecast of 24.3 billion rupees by 16 analyst estimates compiled by Bloomberg. The company produced 62.3 billion kilowatt hours of electricity during the period, compared with 61.3 billion kilowatt hours a year ago and tax expenses rose almost five-fold to 8.5 billion rupees.
The average utilization at NTPC’s coal plants, which account for more than 95 percent of its generation, was lower at 81.3 percent, as cheaper coal prices failed to counter increased competition from lower-cost producers. Tata Power Delhi Distribution Ltd. is seeking to withdraw from some purchase pacts with NTPC because there are lower-cost options, the electricity retailer’s head of power management, Sanjay Kumar Banga, said in an interview last month.