NTPC Ltd reported a dip in net profit for the fourth quarter of 2016-17. In a filing to the exchanges, NTPC said that the Profit After Tax for the quarter stood at ₹2,079.40 crore, 25.54 per cent lower than ₹2,792.69 crore reported in the corresponding quarter of the previous fiscal.

The dip in profit corresponds to the investment impairment in the Ratnagiri Gas Power Project Ltd (Dabhol power plant). NTPC’s noted an investment impairment on the ₹974.30-crore project and reported a recoverable amount of ₹191.35 crore. This is in line with NTPC’s joint venture partner GAIL India’s ₹783-crore investment impairment in the same project.

A power sector analyst told BusinessLine that this impairment can be reversed if the Dabhol project resumes operating at the earlier envisaged capacity. The write-down reflects that the project is running at nearly a fourth of its total capacity.

Compared to the fourth quarter of 2015-2016, NTPC reported a 0.10 per cent dip in overall coal consumption and a 2.31 per cent increase in gross energy generation for the reporting quarter. This reflects on the company’s drive to lower coal consumption, and increase power generation. The increased power generation also includes generation from solar power projects.

The NTPC board also declared a final dividend of ₹2.17 per equity share for 2016-17. This is subject to the shareholders’ approval. Total revenue for the financial year ending March 2017 stood at ₹20,886.85 crore (₹18,732.41 crore).

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