NHPC quarterly profit slumps 14 per cent to Rs 616 crore

NEW DELHI: Hydel power producer NHPC today reported a 14 per cent decline in net profit at Rs 616.03 crore in the three months ended June, mainly on account of higher finance costs. The state-owned company had a net profit of Rs 719.26 crore.

In the first quarter of current financial year, total income from operations rose to Rs 2,054.85 crore from Rs 1,619.60 crore in the same period a year ago, according to a regulatory filing.

The company's finance costs went up to Rs 322.10 crore in the latest quarter under review compared to Rs 116.06 crore in the year-ago period.

According to the filing, borrowing cost of Rs 101.88 crore related to Subansiri Lower project has been charged to the statement of profit & loss. Besides, administration and other costs of Rs 35.91 crore with regard to this project have also been charged.

The work at 2,000 MW Subansiri Lower project has been stalled since December 2011 on account of protests by anti-dam activists and the central government is pursuing the matter.

"Active construction work at Teesta Low Dam-IV project has been interrupted due to stoppage of work by one of the contractors with effect from March 20, 2013.
"As such, borrowing cost of Rs 2,315 lakh and administration and other cost of Rs 1,361 lakh for the current quarter have been charged to the statement of profit & loss," the filing said.

Shares of the company jumped over three per cent to close at Rs 23.10 on the BSE.