(Reuters) -Top Indian power producer NTPC reported a rise in its second-quarter adjusted profit on Thursday, on lower expenses due to a drop in fuel costs.
The company’s consolidated profit before tax and other items for the three months ended September 30 rose 19.4% from a year earlier to 56.24 billion rupees ($639.9 million) .
For NTPC, fuel cost refers to the expenses incurred in procuring and consuming fuels required for electricity generation, which contributes to nearly 60% of the company’s total expenses.
The state-owned firm’s total expenses fell 1.6% to 402.18 billion rupees on the back of lower fuel cost, which dropped nearly 5%.
Power generation in India recovered in the second quarter after a subdued quarter that ended in June. A low base and increased traction in economic activity helped to spur demand, according to analysts at Elara Capital.
However, due to grid restrictions, NTPC’s thermal power segment’s plant load factor, which is a percentage of energy utilised by the power plant corresponding to installed capacity, fell to 66.01% from 72.28% in the July-September period.
The company added 7450 megawatts (MW) of installed capacity since Sept. 2024, taking its total installed capacity to 83893 MW.
India plans to increase its coal power capacity by 46% by 2035, besides its effort to expand its renewable energy capacity.
NTPC’s quarterly revenue from operations marginally rose by 0.2% to 447.86 billion rupees.
($1 = 87.8950 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Harikrishnan Nair and Krishna Chandra Eluri)
