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« Back STATEMENT OF UNAUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2020

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED  31 DECEMBER 2020

(Rupee Crore)

Sl. No.ParticularsQuarter
ended 31.12.2020
(Unaudited)
Quarter
ended 30.09.2020
(Unaudited)
Quarter
ended 31.12.2019
(Unaudited)
Nine months
ended 31.12.2020
(Unaudited)
Nine months
ended 31.12.2019
(Unaudited)
Year
ended 31.03.2020
(Audited)
12345678
1Income      
 (a) Revenue from operations24509.2624677.1423496.3572639.8670453.5197700.39
 (b) Other income759.301346.19526.272673.031746.152778.02
 Total income (a+b)25268.5626023.3324022.6275312.8972199.66100478.41
2Expenses      
 (a) Fuel cost12690.8713038.5312466.8737237.5839253.4154241.82
 (b) Electricity purchased for trading673.87689.90593.422224.511946.752776.44
 (c) Employee benefits expense1286.491346.461164.743920.723497.704925.60
 (d) Finance costs2009.361772.811760.815864.694945.066781.97
 (e) Depreciation and amortisation expense2555.422529.422319.817614.586493.908622.85
 (f) Other expenses  2490.962418.852294.936961.505980.698663.81
 Total expenses (a+b+c+d+e+f)21706.9721795.9720600.5863823.5862117.5186012.49
3Profit before exceptional items, tax and regulatory deferral account balances (1-2)3561.594227.363422.0411489.3110082.1514465.92
4Exceptional items-(income) / expense (Refer Note 8)-560.43-1363.00--
5Profit before tax and regulatory deferral account balances (3-4)3561.593666.933422.0410126.3110082.1514465.92
6Tax expense:      
 (a) Current tax661.42678.03671.781862.171866.395153.46
 (b) Deferred tax507.22(169.02)1353.281045.652331.914028.49
 Total tax expense (a+b)1168.64509.012025.062907.824198.309181.95
7Profit before regulatory deferral account balances (5-6)2392.953157.921396.987218.495883.855283.97
8Net movement in regulatory deferral account balances (net of tax)922.39346.881598.162071.812976.524828.84
9Profit for the period (7+8)3315.343504.802995.149290.308860.3710112.81
10Other comprehensive income      
 Items that will not be reclassified to profit or loss      
 (a)Net acturial gains/(losses) on defined benefit plans(59.17)(59.16)(64.52)(177.53)(193.23)(346.04)
 (b)Net gains/(losses) on fair value of equity instruments13.38(1.14)0.3023.94(20.28)(41.64)
 Income tax on items that will not be reclassified to profit or loss      
 (a)Net acturial gains/(losses) on defined benefit plans10.3410.3411.2731.0233.7660.46
 Other comprehensive income for the period (net of tax)(35.45)(49.96)(52.95)(122.57)(179.75)(327.22)
11Total comprehensive income for the period (9+10) 3279.893454.842942.199167.738680.629785.59
12Paid-up equity share capital (Face value of share Rupee 10/- each)9696.679894.569894.569696.679894.569894.56
13Other  equity  excluding  revaluation  reserve  as  per  balance sheet     103674.88
14Earnings   per   share   (of  Rupee 10/-   each)   -   (not   annualised) (including   net   movement   in   regulatory   deferral   account balances): Basic and Diluted (in Rupee)3.353.543.039.398.9510.22
15Earnings   per   share   (of  Rupee 10/- each)   -   (not   annualised) (excluding   net   movement   in   regulatory   deferral   account balances): Basic and Diluted (in Rupee)2.423.191.417.305.955.34

See accompanying notes to the standalone financial results.

 

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2020

(Rupee Crore)
Sl.No.ParticularsQuarter ended 31.12.2020
(Unaudited)
Quarter ended 30.09.2020
(Unaudited)
Quarter ended 31.12.2019
(Unaudited)
Nine months ended 31.12.2020
(Unaudited)
Nine months ended 31.12.2019
(Unaudited)
Year ended 31.03.2020
(Audited)
12345678
1Segment revenue      
 - Generation24432.4624650.7323176.8572042.0269504.8696583.92
 - Others1208.25932.021193.383525.523606.814991.11
 - Unallocated45.58590.4834.37653.60240.19428.19
 - Less: Inter segment elimination417.73149.90381.98908.251152.201524.81
 Total25268.5626023.3324022.6275312.8972199.66100478.41
2Segment results      
 Profit before interest, exceptional items and tax (including regulatory deferral account balances)      
 - Generation6930.926096.507225.7220187.3718968.2627606.70
 - Others81.2447.82173.29233.81446.68569.02
 Total7012.166144.327399.0120421.1819414.9428175.72
 Less:      
 (i) Finance costs2009.361772.811760.815864.694945.066781.97
 (ii) Other unallocated expenditure net of unallocable income323.54(276.16)279.66556.75781.061076.68
 (iii) Exceptional items (Refer Note 8)-560.43-1,363.00--
 Profit before tax (including regulatory deferral account balances)4679.264087.245358.5412636.7413688.8220317.07
 Tax expense (including tax on movement in regulatory deferral account balances)1363.92582.442363.403346.444828.4510204.26
 Profit after tax3315.343504.802995.149290.308860.3710112.81
3Segment assets      
 - Generation224890.40222573.55192321.65224890.40192321.65211353.34
 - Others7754.557076.296408.987754.556408.986685.20
 - Unallocated112965.59116005.63111400.95112965.59111400.95109628.91
 Total345610.54345655.47310131.58345610.54310131.58327667.45
4Segment liabilities      
 - Generation19687.6820086.3717455.5419687.6817455.5418410.27
 - Others3736.633568.793648.053736.633648.053841.80
 - Unallocated204858.69205188.58175950.46204858.69175950.46191845.94
 Total228283.00228843.74197054.05228283.00197054.05214098.01
The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.
 

Notes to Standalone Financial Results:

1. The above standalone financial results have been reviewed by the Audit Committee of the Board of Directors in its meeting held on 3 February 2021 and approved by the Board of Directors in its meeting held on 4 February 2021.

2. The Joint Statutory Auditors of the Company have carried out the limited review of these standalone financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. a) (i) The Central Electricity Regulatory Commission (CERC)  notified the CERC (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter and nine months ended 31 December 2020 is Rupee 22,955.77 crore and Rupee 67,834.05 crore respectively (previous quarter and nine months Rupee 21,476.20 crore and Rupee 66,410.30 crore).

(ii) Sales  for the quarter and nine months ended 31 December 2020 have been provisionally recognized at Rupee 23,245.89 crore and Rupee 68,374.35 crore respectively (previous quarter and nine months Rupee 21,856.07 crore and Rupee 66,742.61 crore) on the said basis.

b) Sales for the quarter and nine months ended 31 December 2020 include Rupee 262.43 crore and Rupee 844.16 crore respectively (previous quarter and nine months Rupee 443.61 crore and Rupee 500.04 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.

c) Sales for the quarter and nine months ended 31 December 2020 include Rupee 21.23 crore and Rupee 63.47 crore respectively (previous quarter and nine months Rupee 17.63 crore and Rupee 52.89 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d) Revenue from operations for the quarter and nine months ended 31 December 2020 include Rupee 698.88 crore and Rupee 2,284.61 crore respectively (previous quarter and nine months Rupee 646.44 crore and Rupee 2,072.35 crore) on account of sale of energy through trading.

4. The environmental clearance (“Clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of Clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the Clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 31 December 2020 is Rupee 15,164.11 crore (31 March 2020: Rupee 15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

5. The Company is executing a hydro power project in the State of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 December 2020 is Rupee 163.67 crore (31 March 2020: Rupee 163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

6. An amount of Rupee 757.97 crore (31 March 2020: Rupee 749.01 crore) has been incurred upto 31 December 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes Rupee 447.34 crore (31 March 2020: Rupee 439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary

7. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the previous year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of Rupee 500.00 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of Rupee500.00 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure. On 17 January 2020, unconditional bank guarantee was submitted by the operator to Registrar General and Rupee 500.00 crore was released to operator by the Hon’ble High Court. As per order of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred. The handing over of the infrastructure facility has not yet completed.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 38.05 crore as at 31 December 2020 (31 March 2020:Rupee 37.92 crore) and the balance amount of Rupee 2,119.36 crore (31 March 2020: Rupee 2,014.84 crore) has been considered as contingent liability.

8. The Company is in the business of generation and sale of electricity which is an essential service as emphasized by MOP, GOI. During the outbreak of COVID-19, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of the Board, an amount of Rupee 1,363.00 crore has been approved by the Board, to be allowed during the year 2020-21. The entire amount has since been accounted for and disclosed as exceptional item.

Further, CERC issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from 24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, under the Atmanirbhar Bharat package, the Company has deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the quarter and nine months ended 31 December 2020 due to the reduction in LPSC rate and deferment of capacity charges, is not material.

The Company has considered possible impact of COVID-19 in the preparation of financial results. The Management does not anticipate any material medium to long-term impact on the financial position of the Company. The Company will continue to closely monitor any material changes to the future economic conditions.

9. During the nine months ended 31 December 2020, one thermal unit of 660 MW at Khargone w.e.f. 4 April 2020, one thermal unit of 800 MW at Lara w.e.f. 7 November 2020, 8 MW solar PV capacity at Auraiya w.e.f. 10 November 2020 and 7 MW solar PV capacity at Auraiya w.e.f. 4 December 2020 have been declared commercial. Further, Dulanga Captive Coal Mine of the Company  has been declared commercial w.e.f. 1 October 2020.

10. The Board of Directors of the Company has declared interim dividend of Rupee 3.00 per share (face value of Rupee 10/- each) for the financial year 2020-21 in its meeting held on 4 February 2021.

11. Pursuant to the approval of Board of Directors for buyback of equity shares in its meeting held on 2 November 2020, the Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of Rupee 2,275.75 crore being 2% of the total paid up equity share capital at Rupee 115.00 per equity share. The settlement of all valid bids was completed on 30 December 2020 and the equity shares bought back were extinguished on 1 January 2021. Accordingly, the paid up equity share capital has been reduced by Rupee 197.89 crore and other equity is reduced by Rupee 2,567.02 crore (including tax on buy back of shares of Rupee 484.06 crore and other buyback expenses of Rupee 5.10 crore (net of tax)). Further, earnings per share has been adjusted on account of buy back of shares.

12.The Company has entered into a tripartite framework agreement with Ratnagiri Gas & Power Pvt. Ltd. (RGPPL), a Joint Venture Company of NTPC Limited, and its lenders on 31 December 2020 for settlement of RGPPL's outstanding debt liabilities as per the Composite Resolution Plan.  As per the Resolution Plan, the Company has provided inter corporate loan of Rupee 885 crore to RGPPL for settlement of loan with the lenders. Further, 35.47% of equity held by lenders in RGPPL have been transferred to the Company as a part of the Resolution Plan. Consequently, the Company’s equity shareholding in RGPPL has increased from 25.51% to 60.98% on 31 December 2020 and  RGPPL has become a subsidiary company of NTPC Limited with effect from 31 December 2020.

13. The Company has maintained required asset cover as per the terms of offer document/ Information Memorandum and/or Debenture Trust Deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.

14. Previous periods figures have been reclassified wherever considered necessary.

 

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2020

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.12.2020
(Unaudited)
Quarter ended 30.09.2020
(Unaudited)
Quarter ended 31.12.2019
(Unaudited)
Nine months ended 31.12.2020
(Unaudited)
Nine months ended 31.12.2019
(Unaudited)
Year ended 31.03.2020
(Audited)
12345678
1Income      
 (a) Revenue from operations27526.0327707.7626478.3381428.5579073.53109464.04
 (b) Other income861.24969.88642.022431.041968.802908.54
 Total income (a+b)28387.2728677.6427120.3583859.5981042.33112372.58
2Expenses      
 (a) Fuel cost13446.6213748.3313258.7839296.8741381.5357185.62
 (b) Electricity purchased for trading1116.221180.001074.343667.223738.445185.95
 (c) Employee benefits expense1554.881611.871391.654703.434197.645830.48
 (d) Finance costs2456.542219.372147.057141.165916.268116.85
 (e) Depreciation and amortisation expense3041.603014.832782.418993.077742.9310356.16
 (f) Other expenses  2667.452655.282663.777560.286735.729725.41
 Total expenses (a+b+c+d+e+f)24283.3124429.6823318.0071362.0369712.5296400.47
3Profit before exceptional items, tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)4103.964247.963802.3512497.5611329.8115972.11
4Share of net profits of joint ventures accounted for using equity method195.03151.4284.12480.50355.17405.40
5Profit before exceptional items, tax and regulatory deferral account balances (3+4)4298.994399.383886.4712978.0611684.9816377.51
6Exceptional items-(income) / expense (Refer Note 9)2.08670.20-1509.04--
7Profit before tax and regulatory deferral account balances (5-6)4296.913729.183886.4711469.0211684.9816377.51
8Tax expense      
 (a) Current tax734.82761.14736.462079.252108.725526.53
 (b) Deferred tax619.23(120.58)1290.221301.942280.613821.01
 Total tax expense (a+b)1354.05640.562026.683381.194389.339347.54
9Profit before regulatory deferral account balances (7-8)2942.863088.621859.798087.837295.657029.97
10Net movement in regulatory deferral account balances (net of tax)933.50405.991491.492232.082976.474872.01
11Profit for the period (9+10)3876.363494.613351.2810319.9110272.1211901.98
12Other comprehensive income      
 (a)Items that will not be reclassified to profit or loss      
  (i)Net actuarial gains/(losses) on defined benefit plans(65.08)(63.05)(67.33)(189.49)(201.67)(327.10)
  (ii)Net gains/(losses) on fair value of equity instruments13.38(1.14)0.3023.94(20.28)(41.64)
  (iii)Share of other comprehensive income of joint ventures accounted for under the equity method(0.05)(0.06)(0.34)(0.17)(1.24)(0.50)
  Income tax on items that will not be reclassfied to profit or loss      
  (i)Net acturial gains/(losses) on defined benefit plans11.8411.1411.5833.6735.1366.52
 (b)Items that will be reclassified to profit or loss      
  (i)Exchange differences on translation of foreign operations(2.54)(13.43)3.11(20.81)8.6040.00
 Other comprehensive income for the period (net of tax) (a+b)(42.45)(66.54)(52.68)(152.86)(179.46)(307.72)
13Total comprehensive income for the period (11+12) 3833.913428.073298.6010167.0510092.6611594.26
14Profit attributable to owners of the parent company3766.463435.993264.0710092.8410065.5311600.23
15Profit attributable to non-controlling interest109.9058.6287.21227.07206.59301.75
16Other comprehensive income attributable to owners of the parent company(42.08)(66.17)(52.38)(151.86)(178.68)(303.43)
17Other comprehensive income attributable to non controlling interest(0.37)(0.37)(0.30)(1.00)(0.78)(4.29)
18Paid-up equity share capital
(Face value of share Rupee 10/- each)
9696.679894.569894.569696.679894.569894.56
19Other equity excluding revaluation reserve as per balance sheet     108944.60
20Earnings  per share  (of Rupee 10/-  each) -  (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)3.813.473.3010.2010.1711.72
21Earnings  per share  (of Rupee 10/-  each) -  (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)2.863.061.797.957.166.80
See accompanying notes to the consolidated financial results

 

CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2020

(Rupee Crore)
Sl.No.ParticularsQuarter ended 31.12.2020
(Unaudited)
Quarter ended 30.09.2020
(Unaudited)
Quarter ended 31.12.2019
(Unaudited)
Nine months ended 31.12.2020
(Unaudited)
Nine months ended 31.12.2019
(Unaudited)
Year ended 31.03.2020
(Audited)
12345678
1Segment revenue      
 - Generation27125.8727343.2325875.7479773.4776717.69106441.61
 - Others2122.041906.062148.856391.516889.219425.86
 - Unallocated32.7325.5126.2770.49136.87162.13
 - Less: Inter segment elimination893.37597.16930.512375.882701.443657.02
 Total28387.2728677.6427120.3583859.5981042.33112372.58
2Segment results      
 Profit before interest, exceptional items and tax (including regulatory deferral account balances)      
 - Generation7865.307143.887951.1223091.6421304.4330688.92
 - Others109.1181.01110.11316.56455.81605.39
 Total7974.417224.898061.2323408.2021760.2431294.31
 Less:      
 (i) Finance costs2456.542219.372147.057141.165916.268116.85
 (ii) Other unallocated expenditure net of unallocable income87.02123.41204.77591.04530.34895.87
 (iii) Exceptional items (Refer Note 9)2.08670.20-1509.04--
 Profit before tax (including regulatory deferral account balances)5428.774211.915709.4114166.9615313.6422281.59
 Tax expense (including tax on movement in regulatory deferral account balances)1552.41717.302358.133847.055041.5210379.61
 Profit after tax3876.363494.613351.2810319.9110272.1211901.98
3Segment assets      
 - Generation271904.75267440.66229119.44271904.75229119.44249707.52
 - Others9687.108911.858190.329687.108190.328496.37
 - Unallocated118527.68120985.94132109.55118527.68132109.55119525.64
 - Less: Inter segment elimination383.57385.13485.36383.57485.36342.40
 Total399735.96396953.32368933.95399735.96368933.95377387.13
4Segment liabilities      
 - Generation27767.9227401.1824112.2427767.9224112.2425614.76
 - Others5173.474934.675037.385173.475037.385254.41
 - Unallocated243200.14242545.24222231.78243200.14222231.78228021.20
 - Less:Inter segment elimination383.57385.13485.36383.57485.36342.40
 Total275757.96274495.96250896.04275757.96250896.04258547.97
The operations of the Group are mainly carried out within the country and therefore, there is no reportable geographical segment.

 

Notes to Consolidated Financial Results:

1. The above consolidated financial results have been reviewed by the Audit Committee of the Board of Directors in its meeting held on 3 February 2021 and approved by the Board of Directors in its meeting held on 4 February 2021.

2. The Joint Statutory Auditors of the Company have carried out the limited review of these consolidated financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. The subsidiary and joint venture companies considered in the consolidated financial results of NTPC Limited ("The Company") are as follows:

a)Subsidiary CompaniesOwnership (%)
1NTPC Electric Supply Company Ltd.100.00
2NTPC Vidyut Vyapar Nigam Ltd.100.00
3Kanti Bijlee Utpadan Nigam Ltd.100.00
4Nabinagar Power Generating Company Ltd.100.00
5Bhartiya Rail Bijlee Company Ltd.74.00
6Patratu Vidyut Utpadan Nigam Ltd.74.00
7North Eastern Electric Power Corporation Ltd. (NEEPCO)100.00
8THDC India Limited (THDCIL)74.496
9NTPC Mining Ltd.100.00
10NTPC EDMC Waste Solutions Private Ltd.74.00
11NTPC Renewable Energy Ltd.*100.00
12Ratnagiri Gas and Power Private Ltd.**60.98
b)Joint Venture Companies 
1Utility Powertech Ltd.50.00
2NTPC GE Power Services Private Ltd.50.00
3NTPC SAIL Power Company Ltd.50.00
4NTPC Tamilnadu Energy Company Ltd.50.00
5Aravali Power Company Private Ltd.50.00
6Meja Urja Nigam Private Ltd.50.00
7NTPC BHEL Power Projects Private Ltd.50.00
8National High Power Test Laboratory Private Ltd.20.00
9Transformers and Electricals Kerala Ltd.44.60
10Energy Efficiency Services Ltd.47.15
11CIL NTPC Urja Private Ltd.50.00
12Anushakti Vidhyut Nigam Ltd.49.00
13Hindustan Urvarak and Rasayan Ltd.29.67
14Konkan LNG Private Ltd.14.82
15Trincomalee Power Company Ltd.50.00
16Bangladesh-India Friendship Power Company Private Ltd.50.00

All the above Companies are incorporated in India except Joint Venture Companies at Sl. No.15 and 16 which are incorporated in Srilanka and Bangladesh respectively.

*During the quarter, the Company has incorporated a wholly owned subsidiary company, in the name of 'NTPC Renewable Energy Ltd.' on 7 October 2020, to undertake Renewable Energy Business.

**The Company has entered into a tripartite framework agreement with Ratnagiri Gas & Power Pvt. Ltd. (RGPPL), a Joint Venture Company of NTPC Limited, and its lenders on 31 December 2020 for settlement of RGPPL's outstanding debt liabilities as per the Composite Resolution Plan.  As per the Resolution Plan, the Company has provided inter corporate loan of  Rupee 885 crore to RGPPL for settlement of loan with the lenders. Further, 35.47% of equity held by lenders in RGPPL have been transferred to the Company as a part of the Resolution Plan. Consequently, the Company’s equity shareholding in RGPPL has increased from 25.51% to 60.98% on 31 December 2020 and  RGPPL has become a subsidiary company of NTPC Limited with effect from 31 December 2020.

4. a) (i) The Central Electricity Regulatory Commission (CERC) notified the CERC (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter and nine months ended 31 December 2020 is Rupee 24,988.34 crore and Rupee 73,754.06 crore respectively (previous quarter and nine months Rupee 23,690.88 crore and Rupee 71,719.95 crore).

(ii) Sales  for the quarter and nine months ended 31 December 2020 have been provisionally recognized at Rupee 25,372.31 crore and Rupee 74,393.28 crore respectively (previous quarter and nine months Rupee 23,952.46 crore and Rupee 72,149.80 crore) on the said basis.

b) Sales for the quarter and nine months ended 31 December 2020 include Rupee 263.04 crore and Rupee 841.49 crore respectively (previous quarter and nine months Rupee 444.99 crore and Rupee 525.41 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.

c) Sales for the quarter and nine months ended 31 December 2020 include Rupee 23.13 crore and Rupee 72.05 crore respectively (previous quarter and nine months Rupee 21.00 crore and Rupee 62.99 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d) Revenue from operations for the quarter and nine months ended 31 December 2020 include Rupee 1,606.52 crore and Rupee 5,155.51 crore respectively (previous quarter and nine months Rupee 1,598.98 crore and Rupee 5,335.40 crore) on account of sale of energy through trading.

5. The environmental clearance (“Clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of Clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the Clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 31 December 2020 is Rupee 15,164.11 crore (31 March 2020: Rupee 15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

6. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 December 2020 is  Rupee 163.67crore (31 March 2020: Rupee 163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

7. An amount of Rupee 757.97 crore (31 March 2020: Rupee 749.01 crore) has been incurred upto 31 December 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes Rupee 447.34 crore (31 March 2020: Rupee 439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

8. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of ₹ 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the previous year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of Rupee 500.00 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of Rupee 500.00 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure. On 17 January 2020, unconditional bank guarantee was submitted by the operator to Registrar General and Rupee 500.00 crore was released to operator by the Hon’ble High Court. As per order of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred. The handing over of the infrastructure facility has not yet completed.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 38.05 crore as at 31 December 2020 (31 March 2020:Rupee 37.92 crore) and the balance amount of Rupee 2,119.36 crore (31 March 2020: Rupee 2,014.84 crore) has been considered as contingent liability.

9. The Group is mainly in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power, Government of India. During the outbreak of COVID-19, the group companies in the business of generation and sale of electricity have ensured the availability of its power plants to generate power and have continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of respective Boards, to be allowed during the year 2020-21. The amount accounted for in this regard has been disclosed as exceptional item.

Further, CERC issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from 24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, under the Atmanirbhar Bharat package, the group companies in the business of generation and sale of electricity have deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the quarter and nine months ended 31 December 2020 due to the reduction in LPSC rate and deferment of capacity charges, is not material.

The Group has considered possible impact of COVID-19 in the preparation of financial results. The Group does not anticipate any material medium to long-term impact on the financial position of the Group. The Group will continue to closely monitor any material changes to the future economic conditions.

10. During the nine months ended 31 December 2020, one thermal unit of 660 MW at Khargone w.e.f. 4 April 2020, one thermal unit of 800 MW at Lara w.e.f. 7 November 2020, 8 MW solar PV capacity at Auraiya w.e.f. 10 November 2020 and 7 MW solar PV capacity at Auraiya w.e.f. 4 December 2020 have been declared commercial.  Further, Dulanga Captive Coal Mine of the Company has been declared commercial w.e.f. 1 October 2020. Further, two units of 150 MW each at Kameng Hydro Electric Project w.e.f. 17 June 2020 and 1 July 2020 respectively of NEEPCO and 50 MW at Kasargod Solar Project w.e.f. 31 December 2020, of THDCIL,  have been declared commercial.

11. The Board of Directors of the Company has declared interim dividend of Rupee 3.00 per share (face value of Rupee 10/- each) for the financial year 2020-21 in its meeting held on 4 February 2021.

12. Pursuant to the approval of Board of Directors of the Company for buyback of equity shares in its meeting held on 2 November 2020, the Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of Rupee 2,275.75 crore being 2% of the total paid up equity share capital at Rupee 115.00 per equity share. The settlement of all valid bids was completed on 30 December 2020 and the equity shares bought back were extinguished on 1 January 2021. Accordingly, the paid up equity share capital has been reduced by Rupee 197.89 crore and other equity is reduced by Rupee 2,567.02 crore (including tax on buy back of shares of Rupee 484.06 crore and other buyback expenses of Rupee 5.10 crore (net of tax)). Further, earnings per share has been adjusted on account of buy back of shares.

13. The Company has maintained required asset cover as per the terms of offer document/ Information Memorandum and/or Debenture Trust Deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.

14. The figures for the quarter and nine months ended 31 December 2019 have been restated consequent to acquisition of 74.496% and 100% of paid up equity share capital, held by Government of India, in THDCIL and NEEPCO respectively w.e.f. 27 March 2020 and accounted as a common control acquisition considering Appendix C of Ind AS 103- Business Combinations in the previous financial year.

15. Previous periods figures have been reclassified wherever considered necessary.

 

 

For and on behalf of the Board of Directors
NTPC Limited

Place: New Delhi
Date: 4 February 2021

       (A.K.Gautam)
DIRECTOR (FINANCE)
DIN:08293632