New Delhi, May 29 (IANS) State-run power generator NTPC on Monday posted a 25.5 per cent fall in standalone net profit for the fourth quarter ended March at Rs 2,079 crore on account of impairement loss of Rs 783 crore on investment in its joint venture Ratnagiri Gas and Power Ltd.
NTPC had recorded a profit after tax of Rs 2,792.7 crore in same quarter of 2015-16.
The company’s revenue during the quarter in consideration increased 9 per cent to Rs 20,417 crore, as compared to Rs 18,325 crore earned in the corresponding quarter of the previous fiscal.
NTPC’s operating profit during January-March, however, at Rs 5,463 crore dropped 6.7 per cent, as compared to the same quarter of last year.
For the entire fiscal 2016-17, net profit also came in lower at Rs 9,385.26 crore, as against the PAT of Rs 10,769.60 crore earned in the previous fiscal.
In a stock exchange filing, NTPC said it has an investment of Rs 974.31 crore in Ratnagiri Gas and Power Ltd (RGPPL), a joint venture with state-run gas utility GAIL, and has initiated the process of demerger of its business into two separate companies.
“In compliance of Ind AS 36, an assessment on impairment of the investment in RGPPL was carried out by an independent expert and recoverable amount of Rs 191.35 crore has been assessed based on value in use after considering the proposed demerger scheme of LNG terminal and power block,” NTPC said.
“Consequently, impairment loss on investment in RGPPL amounting to Rs 782.95 crore has been provided,” it added.
The NTPC stock closed trade on Monday at Rs 156.35 a share, marginally up 0.13 per cent, or by 20 paise, on the Bomaby Stock Exchange (BSE).