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Unaudited Financial Results for the Quarter and Nine-Month Period ended 31st December 2009

(Rs./ Lakh)
S.No. Particulars Quarter ended 31.12.2009 (Unaudited) Quarter ended 31.12.2008 (Unaudited) Nine-month period ended 31.12.2009 (Unaudited) Nine-month period ended 31.12.2008 (Unaudited) Year ended 31.03.2009 (Audited)
1 2 3 4 5 6 7
1 (a) Net Sales (Net of Electricity Duty) 1118373 1127706 3396920 3047795 4192373
  (b) Other Operating Income 52547 58602 152058 143371 220235
2 Expenditure          
  (a) Fuel Cost 676726 700043 2111676 1909486 2711069
  (b) Employees Cost 57230 66032 166675 184288 246313
  (c) Depreciation 66136 55900 191790 163809 236448
  (d) Other Expenditure 47892 40773 143104 136225 195209
  Total (a+b+c+d) 847984 862748 2613245 2393808 3389039
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 322936 323560 935733 797358 1023569
4 Other Income 25366 26526 77583 87959 114668
5 Profit before Interest & Exceptional Items (3+4) 348302 350086 1013316 885317 1138237
6 Interest & Finance charges 34178 50757 132714 145583 202290
7 Profit after Interest but before Exceptional Items (5-6) 314124 299329 880602 739734 935947
8 Exceptional items - - - - -
9 Profit (+) /Loss (-) from Ordinary Activities before Tax (7+8) 314124 299329 880602 739734 935947
10 Tax Expense:          
  a) Current Tax 88622 73722 204306 129457 113834
  b) Deferred Tax (11168) (35588) 4972 (45923) (44880)
  c) Fringe Benefit Tax (FBT) 172 529 269 1513 2098
  Total (a+b+c) 77626 38663 209547 85047 71052
  Less: Deferred Tax Recoverable/(Payable) - (35588) - (45923) (44880)
  FBT transferred to Expenditure during construction/ Development of coal mines - 13 - 31 115
  Tax Expense (Net) 77626 74238 209547 130939 115817
11 Net profit (+)/ Loss (-) from Ordinary Activity after Tax (9-10) 236498 225091 671055 608795 820130
12 Extraordinary Items (Net of tax expense) - -   - -
13 Net profit (+)/ Loss (-) for the period (11-12) 236498 225091 671055 608795 820130
14 Paid-up Equity Share Capital 
(Face value of share Rs.10/- each)
824546 824546 824546 824546 824546
15 Reserves excluding Revaluation Reserve as per Balance Sheet of 31st March 2009 - - - - 4912460
16 Earning per share - (EPS) ( in Rupees.)
 
   
 

 
  (a) Basic and diluted EPS before Extraordinary items (not annualised) 2.87 2.73 8.14 7.38 9.95
  (b) Basic and diluted EPS after Extraordinary items (not annualised) 2.87 2.73 8.14 7.38 9.95
17 Public Shareholding          
  (a) Number of shares 865830000 865830000 865830000 865830000 865830000
  (b) %age of shareholding 10.50 10.50 10.50 10.50 10.50
18 Promoters and Promoter Group Shareholding          
  (a) Pledged/Encumbered          
  - Number of Shares - - - - -
  - Percentage of share (as % of the total shareholding of promoter and promoter group) - - - - -
  - Percentage of share (as % of the total share capital of the company) - - - - -
  (b) Non-encumbered          
  - Number of Shares 7379634400 7379634400 7379634400 7379634400 7379634400
  - Percentage of share (as % of the total shareholding of promoter and promoter group) 100.00 100.00 100.00 100.00 100.00
  - Percentage of share (as % of the total share capital of the company) 89.50 89.50 89.50 89.50 89.50

REPORTING OF SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE-MONTH PERIOD ENDED 31st DECEMBER 2009

(Rs./ Lakh)
S.No. Particulars Quarter ended 31.12.2009 (Unaudited) Quarter ended 31.12.2008 (Unaudited) Nine-month period ended 31.12.2009 (Unaudited) Nine-month period ended 31.12.2008 (Unaudited) Year ended 31.03.2009 (Audited)
1 2 3 4 5 6 7
1 Segment Revenue (Net Sales)          
  - Generation 1114919 1124383 3386338 3038630 4179119
  - Others 3454 3323 10582 9165 13254
  - Total 1118373 1127706 3396920 3047795 4192373
2 Segment Results (Profit before Tax and Interest)          
  - Generation 291000 271835 817703 745631 905305
  - Others 1256 1200 4152 2662 4184
  - Total 292256 273035 821855 748293 909489
  Less:      
  (i) Unallocated Interest and Finance Charges 17985 34479 83098 176651 208630
  (ii) Other Unallocable expenditure net of unallocable income (39853) (60773) (141845) (168092) (235088)
  Total Profit before Tax 314124 299329 880602 739734 935947
3 Capital Employed (Segment Assets - Segment Liabilities)          
  - Generation 3555671 3386901 3555671 3386901 3383665
  - Others 2986 3392 2986 3392 3226
  - Un-allocated 2849409 2482363 2849409 2482363 2350115
  - Total 6408066 5872656 6408066 5872656 5737006

The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

Notes:

1. a) The Central Electricity Regulatory Commission (CERC) has notified by Regulations the terms and conditions for determination of tariff applicable with effect from 1st April 2009 for a period of five years. Pending final determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rs. 1,085,647 lakh for the quarter and Rs.3,329,693 lakh for the nine-month period ended 31st December 2009 on the basis of principles enunciated by the CERC in the said Regulations and considering the capital cost as per the orders of Appellate Tribunal for Electricity (ATE) for the tariff period 2004-2009.

Pending final determination of tariff by the CERC as above, the Company continues to provisionally bill the beneficiaries from 1st April 2009 at the tariff approved by the CERC as applicable on 31st March 2009 as provided in the Regulations, 2009. The amount billed for the quarter and for the nine-month period ended 31st December 2009 on this basis is Rs. 1,099,444 lakh and Rs. 3,266,511 lakh respectively.

b) Sales include Rs. 26,889 lakh for the quarter and Rs.26,778 lakh for the nine-month period ended 31st December 2009 (corresponding previous quarter Rs.52,343 lakh and nine-month Rs. 69,629 lakh) pertaining to previous years recognized based on the orders issued by the CERC/ATE.

c) In respect of stations/units where the CERC had issued final tariff orders applicable from 1st April 2004 to 31stMarch 2009, the Company aggrieved over many of the issues as considered by the CERC in the tariff orders, filed appeals with the ATE. The ATE disposed off the appeals favourably directing the CERC to revise the tariff orders as per the directions and methodology given. The CERC filed an appeal with the Hon’ble Supreme Court of India on some of the issues decided by the ATE which is pending. The Hon'ble Supreme Court of India has not stayed the orders of ATE and the sales for the tariff period 2004-2009 amounting to Rs. 104,429 lakh have been recognised in earlier years based on provisional tariff worked out by the Company as per the methodology and directions as decided by the ATE and the expert legal opinions obtained. Consequently, sales recognised for this quarter and nine-month period ended 31st December 2009 based on CERC Regulations, 2009 are lower by Rs.1,732 lakh and Rs. 2,672 lakh for the quarter and nine-month period ended 31st December 2009 respectively.

2. The CERC has issued Tariff Regulations, 2009 for a period of five years from 1st April 2009. These Regulations provide that the balance depreciable value of the each of the existing stations as on 1st April, 2009 shall be worked out by deducting the cumulative depreciation including the Advance Against Depreciation (AAD) as admitted by the CERC up to 31st March 2009 from the gross depreciable value of the assets. There is no provision for AAD in the said Regulations.

In view of the change in the depreciation rates for tariff purposes as notified by the CERC, the company revised its accounting policy and the amount of AAD required to meet the shortfall in the component of depreciation in revenue over the depreciation to be charged off in future years has been assessed station-wise and wherever an excess has been determined as on 1st April 2009, the same amounting to Rs.2,383 lakh and Rs.29,867 lakh has been recognised as sales during the quarter and nine-month period ended 31st December 2009 respectively.

3. Employees cost include: 
a) Rs.6,047 lakh for the quarter and Rs.18,614 lakh for the nine-month period ended 31st December 2009 (corresponding previous quarter Rs. 4,026 lakh and nine-month Rs.12,040 lakh) towards pay revision of employees in the non-executive category due w.e.f. 1st January 2007 having regard to the guidelines issued by the Department of Public Enterprises, Government of India on an estimated basis. 
b) Rs.5,466 lakh for the quarter and Rs.20,398 lakh for the nine-month period ended 31st December 2009 (corresponding previous quarter Rs.16,596 lakh and nine-month Rs. 51,297 lakh ) towards other employee's benefits.

4.Other expenditure for the quarter and for the nine-month period ended 31st December 2009 are net off of excess provision for employee's benefits amounting to Rs.Nil and Rs.8,293 lakh respectively related to prior periods.

5. Interest and Finance Charges include: 
a) Exchange differences regarded as an adjustment to interest costs amounting to Rs. 7,485 lakh (credit) for the quarter and Rs.Nil for the nine-month period ended 31st December 2009 (corresponding previous quarter Rs.1,783 lakh (debit) and for nine-month Rs.14,063 lakh (debit)). 
b) Other exchange differences arising from settlement/translation of monetary items denominated in foreign currency (other than long term) amounting to Rs.744 lakh (credit) for the quarter and Rs.134 lakh (debit) for the nine-month period ended 31st December 2009 (corresponding previous quarter Rs.2,694 lakh (debit) and nine-month Rs.6,426 lakh (debit).

6.Fringe benefit tax during the quarter and nine-month period ended 31st December 2009 pertains to earlier year.

7.Current tax for the nine-month period ended 31st December 2009 is after adjustment of tax refund of Rs. Nil (Corresponding previous nine- month Rs.54,454 lakh) pertaining to previous years.

8.Construction work at Loharinag Pala Hydro Power Project is suspended temporarily on the advise of Ministry of Power, Government of India (GOI) pending report of the Committee appointed by GOI.

9.Information on investors complaints pursuant to Clause 41 of Listing Agreements for the quarter ended 31stDecember 2009:

Sl.No. Opening Balance Additions Disposals Closing Balance
No. of complaints 8 1901 1900 9

10. The above results have been reviewed by the Audit Committee of the Board of Directors and approved by the Board of Directors in their meetings held on 29th January 2010.

11. The above results have been reviewed by the Statutory Auditors as required under Clause 41 of the Listing Agreements.

12. Figures for the previous period have been regrouped/rearranged wherever necessary.

For and on behalf of the Board of Directors

Place: New Delhi
Date: 29th January 2010

Sd/-
(A. K. SINGHAL)
DIRECTOR (FINANCE)

 

Disclaimer:

"NTPC Limited is proposing, subject to market conditions and other considerations, a further public offer of its equity shares and has filed a Red Herring Prospectus with the Registrar of Companies, National Capital Territory of Delhi and Haryana, the Stock Exchanges and the Securities and Exchange Board of India (“SEBI”) . The Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs at, www.icicisecurities.com, www.citibank.co.in, www.jpmipl.com and www.kmcc.co.in. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled "Risk factors" of the Red Herring Prospectus."

"This publication may not be published or distributed in the United States of America and is not an offer to sell or a solicitation of an offer to buy securities in the United States or elsewhere. These securities have not been and NTPC Limited and the Selling Shareholder do not intend that they will be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration under such Act. NTPC Limited and the Selling Shareholder do not intend to conduct a public offering of securities in the United States of America.”