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« Back STATEMENT OF UNAUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2019

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED  30 SEPTEMBER 2019

(Rupee Crore)

Sl. No.Particulars

Quarter ended 30.09.2019 (Unaudited)

Quarter ended 30.06.2019 (Unaudited)Quarter ended 30.09.2018 (Unaudited)Six months ended 30.09.2019 (Unaudited)Six months ended 30.09.2018 (Unaudited)Year 
ended 31.03.2019  (Audited)
12345678
1Income      
 (a) Revenue from operations22764.5724192.5922261.0846957.1644964.6890307.43
 (b) Other income893.66326.22224.881219.88361.261872.13
 Total income (a+b)23658.2324518.8122485.9648177.0445325.9492179.56
2Expenses      
 (a) Fuel cost12912.2113874.3312872.4826786.5425991.2252493.74
 (b) Electricity purchased for trading568.85784.48613.121353.331293.952713.68
 (c) Employee benefits expense1137.151195.811185.552332.962427.444779.89
 (d) Finance costs1618.991565.261294.113184.252514.044716.74
 (e) Depreciation, amortisation and impairment expense2123.142050.951888.454174.093748.607254.36
 (f) Other expenses  1800.171885.591997.573685.763704.887548.63
 Total expenses (a+b+c+d+e+f)20160.5121356.4219851.2841516.9339680.1379507.04
3Profit before tax and Regulatory deferral account balances (1-2)3497.723162.392634.686660.115645.8112672.52
4Tax expense:      
 (a) Current tax (refer Note 4)498.21696.40580.761194.611166.052849.12
 (b) Deferred tax604.82373.81782.42978.631537.66(5767.83)
 Total tax expense (a+b) 1103.031070.211363.182173.242703.71(2918.71)
5Profit after tax before Regulatory deferral account balances (3-4)2394.692092.181271.504486.872942.1015591.23
6Net movement in Regulatory deferral account balances (net of tax)867.75510.611154.521378.362072.06(3841.34)
7Profit for the period (5+6)3262.442602.792426.025865.235014.1611749.89
8Other comprehensive income/(expense)      
 Items that will not be reclassified to profit or loss (net of tax)      
 (a) Net actuarial gains/(losses) on defined benefit plans(56.01)(50.21)2.44(106.22)4.98(185.13)
 (b) Net gains/(losses) on fair value of equity instruments(13.08)(7.50)(10.86)(20.58)(24.84)(16.74)
 Other comprehensive income/(expense) (net of tax) (a+b)(69.09)(57.71)(8.42)(126.80)(19.86)(201.87)
9Total comprehensive income for the period (7+8)3193.352545.082417.605738.434994.3011548.02
10Paid-up equity share capital
(Face value of share Rupee 10/- each)

9894.56

9894.568245.469894.568245.469894.56
11Paid-up debt capital$   137640.75122851.53127430.48
12Other equity excluding revaluation reserve as per balance sheet    100294.9796166.9997513.61
13Net worth*   109529.71103769.23106771.54
14Debenture redemption reserve   7469.937093.817902.43
15Earnings per share (of Rupee 10/- each) - (not annualised) (including regulatory deferral account balances): Basic and Diluted (in Rupee) (Refer Note 13)3.302.632.455.935.0711.88
16Earnings per share (of Rupee 10/- each) - (not annualised) (excluding regulatory deferral account balances): Basic and Diluted (in Rupee) (Refer Note 13)2.422.111.294.532.9715.76
17Debt equity ratio   1.261.181.19
18Debt service coverage ratio (DSCR)   2.062.392.21
19Interest service coverage ratio (ISCR)   4.434.775.26

$Comprises long term debts 

* Excluding Fly ash utilization reserve

See accompanying notes to the financial results.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rupee Crore)
Sl.No.ParticularsAs at
 30.09.2019 (Unaudited)
As at
 31.03.2019 (Audited)
AASSETS  
1Non-current assets  
 (a) Property, plant and equipment130054.46125290.68
 (b) Capital work-in-progress92113.6790808.89
 (c) Intangible assets336.88329.94
 (d) Intangible assets under development420.88397.80
 (e) Investments in subsidiaries and joint venture companies13822.5413054.02
 (f) Financial assets  
  (i) Investments71.3491.92
  (ii) Loans597.39544.38
  (iii) Other financial assets1724.581424.29
 (g) Other non-current assets13347.5113269.30
 Sub-total - Non-current assets252489.25245211.22
2Current assets  
 (a) Inventories7061.887988.02
 (b) Financial assets  
  (i) Trade receivables19432.098433.86
  (ii) Cash and cash equivalents62.1724.38
  (iii) Bank balances other than cash and cash equivalents3365.162119.96
  (iv) Loans405.09305.79
  (v) Other financial assets9241.538331.84
 (c) Other current assets13122.8415056.70
 Sub-total - Current assets52690.7642260.55
3Regulatory deferral account debit balances5017.973406.00
 TOTAL - ASSETS310197.98290877.77
BEQUITY AND LIABILITIES  
1Equity  
 (a)Equity share capital  9894.569894.56
 (b)Other equity100294.9797513.61
 Sub-total - Total equity110189.53107408.17
2Liabilities  
(i)Non-current liabilities  
 (a) Financial liabilities  
 (i) Borrowings131200.63119698.08
 (ii) Trade payables  
  - Total outstanding dues of micro and small enterprises7.356.41
  - Total outstanding dues of creditors other than micro and small enterprises49.7041.76
 (iii) Other financial liabilities1240.161314.29
 (b) Provisions590.94588.74
 (c) Deferred tax liabilities (net)5120.574200.14
 Sub-total - Non-current liabilities138209.35125849.42
(ii)Current liabilities  
 (a) Financial liabilities  
 (i) Borrowings17268.0515502.90
 (ii) Trade payables  
  - Total outstanding dues of micro and small enterprises327.56353.41
  - Total outstanding dues of creditors other than micro and small enterprises9185.307197.53
 (iii) Other financial liabilities24327.7824902.27
 (b) Other current liabilities1035.83684.34
 (c) Provisions7267.466840.36
 Sub-total - Current liabilities59411.9855480.81
3Deferred revenue2387.122139.37
 TOTAL - EQUITY AND LIABILITIES310197.98290877.77

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2019

(Rupee  Crore)
Sl.No.ParticularsQuarter ended 30.09.2019 (Unaudited)Quarter ended 30.06.2019 (Unaudited)Quarter ended 30.09.2018 (Unaudited)Six months ended 30.09.2019 (Unaudited)Six months ended 30.09.2018 (Unaudited)Year 
ended 31.03.2019  (Audited)
12345678
1Segment revenue      
 - Generation22811.0823516.9321752.0546328.0143735.6588702.38
 - Others1113.011300.42699.112413.431522.823241.51
 - Less: Inter segment elimination387.25382.97-770.22--
  23536.8424434.3822451.1647971.2245258.4791943.89
 - Unallocated121.3984.4334.80205.8267.47235.67
 Total23658.2324518.8122485.9648177.0445325.9492179.56
2Segment results (Profit before tax and interest)      
 - Generation6256.335486.215409.8011742.5410867.4813724.83
 - Others120.12154.7358.27274.85164.10389.72
 Total6376.455640.945468.0712017.3911031.5814114.55
 Less:      
 (i) Unallocated finance costs1618.991565.261294.113184.252514.044716.74
 (ii) Other unallocable expenditure net of unallocable income240.44262.42283.16502.86654.091621.76
 Profit before tax (including regulatory deferral account balances)4517.023813.263890.808330.287863.457776.05
3Segment assets      
 - Generation183337.94178489.85167837.36183337.94167837.36163073.92
 - Others5995.325817.955108.675995.325108.674661.17
 - Unallocated120864.72119259.52111784.29120864.72111784.29123142.68
 Total310197.98303567.32284730.32310197.98284730.32290877.77
4Segment liabilities      
 - Generation18325.5317472.5715623.1718325.5315623.1715748.31
 - Others3582.223597.532592.493582.222592.492869.85
 - Unallocated178100.70172535.33162102.21178100.70162102.21164851.44
 Total200008.45193605.43180317.87200008.45180317.87183469.60

The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.

 

STANDALONE STATEMENT OF CASH FLOWS

(Rupee Crore)
Sl.No.ParticularsSix months ended 30.09.2019 (Unaudited)Six months 
ended 30.09.2018 (Unaudited & not subjected to review) (refer note 2)
Year ended 31.03.2019  (Audited)
ACASH FLOW FROM OPERATING ACTIVITIES   
 Profit before tax 6660.115645.8112672.52
 Add: Net movements in regulatory deferral account balances (net of tax)1378.362072.06(3841.34)
 Add: Tax on net movements in regulatory deferral account balances291.81145.58(1055.13)
 Profit before tax including movements in regulatory deferral account balances8330.287863.457776.05
 Adjustment for:   
 Depreciation, amortisation and impairment expense4174.093748.607254.36
 Provisions118.25122.981150.07
 Deferred revenue on account of advance against depreciation-(51.10)(74.35)
 Deferred revenue on account of government grants(18.09)(17.56)(39.03)
 Deferred foreign currency fluctuation asset(245.24)(955.90)(251.53)
 Deferred income from foreign currency fluctuation362.771017.75371.78
 Regulatory deferral account debit balances(1670.17)(2217.63)4896.47
 Fly ash utilisation reserve fund23.1912.015.42
 Exchange differences on translation of foreign currency cash and cash equivalents-(0.05)0.01
 Finance costs3166.992502.634699.00
 Unwinding of discount on vendor liabilities17.2611.4117.74
 Interest/income on term deposits/bonds/investments(27.55)(38.64)(67.65)
 Dividend income(83.65)(8.30)(124.19)
 Provisions written back(31.33)(23.54)(316.22)
 Profit on de-recognition of property, plant and equipment(0.68)(1.52)(2.72)
 Loss on de-recognition of property, plant and equipment33.9650.99173.84
  5819.804152.1317693.00
 Operating profit before working capital changes14150.0812015.5825469.05
 Adjustment for:   
 Trade receivables(10998.23)(5197.63)(855.89)
 Inventories1150.22687.35(1607.99)
 Trade payables, provisions, other financial liabilities and other liabilities2027.202728.43588.34
 Loans, other financial assets and other assets1120.561717.16(4537.50)
  (6700.25)(64.69)(6413.04)
 Cash generated from operations7449.8311950.8919056.01
 Income taxes (paid) / refunded(1401.02)(1376.78)(3025.54)
 Net cash from/(used in) operating activities - A6048.8110574.1116030.47
B.CASH FLOW FROM INVESTING ACTIVITIES   
 Purchase of  property, plant and equipment & intangible assets(7452.11)(4311.14)(17701.26)
 Payment for business acquisition-(2145.88)(2145.33)
 Disposal of property, plant and equipment & intangible assets2.91-71.06
 Investment in subsidiaries and joint venture companies(1087.52)(2417.05)(3051.35)
 Loans and advances to subsidiaries(200.64)(19.46)(17.65)
 Interest/income on term deposits/bonds/investments received16.3834.9255.93
 Income tax paid on interest income(5.43)(8.22)(39.46)
 Dividend received83.658.30124.19
 Bank balances other than cash and cash equivalents(1234.03)(363.39)1809.65
 Net cash from/(used in) investing activities - B(9876.79)(9221.92)(20894.22)
C.CASH FLOW FROM FINANCING ACTIVITIES   
 Proceeds from non-current borrowings12960.587040.8124844.83
 Repayment of non-current borrowings(3632.53)(2481.82)(13839.47)
 Proceeds from current borrowings1765.1545.759002.58
 Payment of lease liabilities(4.63)(1.36)(8.51)
 Interest paid(4242.54)(3570.37)(9248.74)
 Dividend paid(2473.64)(1970.67)(4922.55)
 Tax on dividend(506.62)(400.96)(1000.49)
 Net cash from/(used in) financing activities - C(3865.77)1338.62(4827.65)
D.Exchange differences on translation of foreign currency cash and cash equivalents-0.05(0.01)
 Net increase/(decrease) in cash and cash equivalents (A+B+C+D)37.7913.62(36.11)
 Cash and cash equivalents at the beginning of the period24.3860.4960.49
 Cash and cash equivalents at the end of the period62.1774.1124.38

Notes to Standalone Financial Results:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 9 November 2019 and approved by the Board of Directors in their meeting held on the same day.

2. The statutory auditors of the Company have carried out the limited review of these financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The comparative figures in the Statement of cash flows for the six months ended 30 September 2018 have been prepared by the Management and have not been subjected to limited review or audit. However, the Management has exercised necessary due diligence in preparing the Statement of cash flows.

3 (a). The CERC notified the Central Electricity Regulatory Commission (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 for all stations, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. Energy charges are billed as per the operational norms specified in  the Regulations 2019. The amount provisionally billed for the quarter and six months ended 30 September 2019 is Rupee 21,809.57 crore and Rupee 44,934.10 crore respectively (previous quarter and six months  Rupee 21,394.54 crore and Rupee 42,874.51 crore as per erstwhile Tariff Regulations, 2014).

(b). Sales  for the quarter and six months ended 30 September 2019 have been provisionally recognized at Rupee 21,860.88 crore and Rupee 44,886.54 crore respectively (previous quarter and six months Rupee 21,450.41 crore and Rupee 43,166.44 crore) on the said basis.

(c). Sales for the quarter and six months ended 30 September 2019 include Rupee 68.07 crore and Rupee 56.43 crore respectively (previous quarter and six months (-) Rupee 50.38 crore and (-) Rupee 135.90 crore) pertaining to previous years, recognized on the basis of orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

(d). Sales for the quarter and six months ended 30 September 2019 also include Rupee 12.39 crore and Rupee 35.26 crore respectively (previous quarter and six months Rupee 20.89 crore and Rupee 41.78 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

(e). Revenue from operations for the quarter and six months ended 30 September 2019 include Rupee 601.18 crore and Rupee 1,425.91 crore respectively (previous quarter and six months Rupee 631.08 crore and Rupee 1,403.46 crore) on account of sale of energy through trading.

4. Provision for current tax for the quarter and six months ended 30 September 2019 includes Rupee Nil (previous quarter and six months Rupee Nil and (-) Rupee 105.88 crore) being tax related to earlier years.

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 environmental 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 three units of 800 MW each have since been declared commercial.  The carrying cost of the project as at 30 September 2019 is Rupee 15,451.60 crore (31 March 2019: Rupee 15,598.80 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 30 September 2019 is Rupee 163.39 crore (31 March 2019: Rupee 163.33 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

7. Non-current assets - other financial assets includes Rupee 726.85 crore (31 March 2019: Rupee 719.71 crore) towards the cost incurred upto 30 September 2019 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), GOI which includes Rupee 419.19 crore (31 March 2019: Rupee 413.40 crore) in respect of arbitration awards challenged by the Company before 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 Current liabilities - Provisions. 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.  An amount of Rupee356.31 crore (31 March 2019: Rupee356.31 crore) has since been deposited based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India.  In the previous year, the Arbitral Tribunal had awarded a claim of Rupee1,891.09 crore plus applicable interest in favour of the operator. The Company aggrieved by the arbitral award and considering  legal opinion obtained had filed an appeal before Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

Hon'ble High Court, vide its order dated 23 September 2019 held that subject to deposit of Rupee500 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. It was further held that 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 has been deposited with the Hon'ble High Court on 5 November 2019.

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’, Significant Accounting Policies of the Company and the principle of  conservatism, an amount of Rupee394.15 crore (31 March 2019: Rupee394.07 crore) has since been provided for on an estimated basis as against the above claim and the balance is considered as contingent liability.

9. During the six months ended 30 September 2019, the Pakri Barwadih Coal Mine has been declared commercial w.e.f. 1 April 2019. Further, one thermal unit of 800 MW at Gadarwara has been declared commercial w.e.f. 1 June 2019.

10. During the quarter, the Company has paid final dividend of Rupee 2.50 per share (face value of Rupee 10/- each) for the financial year 2018-19.

11. The Company has adopted Ind AS 116 'Leases' effective 1 April 2019, using modified retrospective approach and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments and right of use assets has been recognized at an amount equal to the lease liabilities. Application of Ind AS 116 does not have any material impact on the financial results of the Company.

12. In pursuance to Section 115BAA of the Income Tax Act, 1961 announced by Government of India through Taxation Laws (Amendment) Ordinance, 2019, the company has an irrevocable option of shifting to a lower tax rate along with consequent reduction in certain tax incentives including lapse of the accumulated MAT credit. The company has not exercised this option after evaluating the same and continues to recognize the taxes on income as per the earlier provisions.

13. Earning per share has been adjusted for the quarter  and six months ended 30 September 2018 as per Ind AS 33 'Earning per share' on account of issue of fully paid bonus shares during March 2019 in the ratio of one equity share of Rupee10/- each for every five equity shares held.

14. Formula used for computation of coverage ratios DSCR  = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings)  and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).

15. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property,plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.

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

 

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED  30 SEPTEMBER 2019

(Rupee Crore)

Sl. No.Particulars

Quarter ended 30.09.2019 (Unaudited)

Quarter ended 30.06.2019 (Unaudited)Quarter 
ended 30.09.2018 (Unaudited & not subjected to review) (refer note 2)
Six months ended 30.09.2019 (Unaudited)Six months 
ended 30.09.2018 (Unaudited & not subjected to review) (refer note 2)
Year 
ended 31.03.2019  (Audited)
12345678
1Income      
 (a) Revenue from operations24459.7025931.1123347.9550390.8147361.1895742.03
 (b) Other income814.85341.13218.701155.98353.971795.31
 Total income (a+b)25274.5526272.2423566.6551546.7947715.1597537.34
2Expenses      
 (a) Fuel cost13370.7214420.6613138.3327791.3826490.1553833.78
 (b) Electricity purchased for trading1221.061443.041176.432664.102673.315288.12
 (c) Employee benefits expense1176.881221.111211.442397.992467.754907.59
 (d) Finance costs1805.051767.231443.853572.282787.135260.85
 (e) Depreciation, amortisation and impairment expense2285.582192.151994.494477.733956.817688.10
 (f) Other expenses  1867.851946.352048.943814.203789.647603.03
 Total expenses (a+b+c+d+e+f)21727.1422990.5421013.4844717.6842164.7984581.47
3Profit before tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)3547.413281.702553.176829.115550.3612955.87
4Share of net profits of joint ventures accounted for using equity method123.91147.11136.70271.02263.17672.07
5Profit before tax and Regulatory deferral account balances (3-4)3671.323428.812689.877100.135813.5313627.94
6Tax expense:      
 (a) Current tax (refer Note 4)525.05725.22586.401250.271181.782916.31
 (b) Deferred tax604.94373.81782.42978.751537.66(6122.72)
 Total tax expense (a+b)1129.991099.031368.822229.022719.44(3206.41)
7Profit after tax before Regulatory deferral account balances (5-6)2541.332329.781321.054871.113094.0916834.35
8Net movement in Regulatory deferral account balances (net of tax)867.59510.501156.231378.092072.15(4200.90)
9Profit for the period (7+8)3408.922840.282477.286249.205166.2412633.45
10Other comprehensive income/(expense)      
 (a) Items that will not be reclassified to profit or loss
(net of tax)
      
 (i)Net actuarial gains/(losses) on defined
benefit plans
(56.01)(50.21)2.44(106.22)4.98(185.13)
 (ii)Net  gains/(losses)  on  fair  value  of  equity
instruments
(13.08)(7.50)(10.86)(20.58)(24.84)(16.74)
 (iii)Share  of  other  comprehensive  income  of joint ventures accounted for under the equity method(0.58)(0.32)0.40(0.90)0.49(1.07)
 (b) Items that will be reclassified to profit or loss (net of tax)      
 (i)Exchange differences on translation of foreign operations7.91(2.42)20.475.4928.3511.67
 Other comprehensive  income/(expense)  (net  of tax) (a+b)(61.76)(60.45)12.45(122.21)8.98(191.27)
11Total comprehensive income (9+10)3347.162779.832489.736126.995175.2212442.18
12Profit attributable to owners of the parent3400.842837.122493.866237.965194.8512640.02
13Profit attributable to non-controlling interest8.083.16(16.58)11.24(28.61)(6.57)
14Other comprehensive income/(expense) attributable to owners of the parent(61.76)(60.45)12.45(122.21)8.98(191.27)
15Other comprehensive income/(expense) attributable to non controlling interest------
16Paid-up equity share capital (Face value of share Rupee 10/- each)9894.569894.568245.469894.568245.469894.56
17Paid-up debt capital$   156604.98140250.21145723.29
18Other  equity  excluding  revaluation  reserve  as  per balance sheet   103325.1598115.79100142.43
19Net worth*   112553.76105717.79109396.49
20Debenture redemption reserve   7469.937093.817902.43
21Earnings per share (of Rupee 10/- each) - (not annualised) (including   regulatory   deferral   account   balances): Basic and Diluted (in Rupee) (Refer Note 13)3.432.872.526.305.2512.77
22Earnings per share (of Rupee 10/- each) - (not annualised) (excluding   regulatory   deferral   account   balances): Basic and Diluted (in Rupee) (Refer Note 13)2.562.351.354.913.1617.02
23Debt equity ratio   1.391.331.33
24Debt service coverage ratio (DSCR)   1.822.382.23
25Interest service coverage ratio (ISCR)   4.274.535.09

$  Comprises long term debts

* Excluding Fly ash utilization reserve and Corporate social responsibility reserve

See accompanying notes to the financial results.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Rupee Crore)
Sl.No.ParticularsAs at
 30.09.2019 (Unaudited)
As at
 31.03.2019 (Audited)
AASSETS  
1Non-current assets  
 (a) Property, plant and equipment148125.22137490.86
 (b) Capital work-in-progress102951.75106379.66
 (c) Intangible assets337.84330.50
 (d) Intangible assets under development420.88397.80
 (e) Investments accounted for using the equity method8740.478008.06
 (f) Financial assets  
  (i) Investments71.3491.92
  (ii) Loans436.56434.38
  (iii) Other financial assets1223.991302.70
 (g) Other non-current assets14115.9214043.96
 Sub-total - Non-current assets276423.97268479.84
2Current assets  
 (a) Inventories7270.638119.43
 (b) Financial assets  
  (i) Trade receivables21715.3710147.68
  (ii) Cash and cash equivalents651.84208.97
  (iii) Bank balances other than cash and cash equivalents3676.422573.35
  (iv) Loans252.42238.29
  (v) Other financial assets9509.458807.14
 (c) Other current assets13511.0115403.80
 Sub-total - Current assets56587.1445498.66
3Regulatory deferral account debit balances5029.643417.90
 TOTAL - ASSETS338040.75317396.40
BEQUITY AND LIABILITIES  
1Equity  
 (a)Equity share capital  9894.569894.56
 (b)Other equity103325.15100142.43
 Total equity attributable to the owners of the parent113219.71110036.99
 Non controlling interest778.42664.83
 Sub-total - Total equity113998.13110701.82
2Liabilities  
(i)Non-current liabilities  
 (a) Financial liabilities  
 (i) Borrowings149963.43137792.88
 (ii) Trade payables  
  - Total outstanding dues of micro and small enterprises7.356.41
  - Total outstanding dues of creditors other than micro and small enterprises49.7241.80
 (iii) Other financial liabilities1698.791959.86
 (b) Provisions591.47589.09
 (c) Deferred tax liabilities (net)5120.274199.72
 Sub-total - Non-current liabilities157431.03144589.76
(ii)Current liabilities  
 (a) Financial liabilities  
 (i) Borrowings17742.3415994.56
 (ii) Trade payables  
  - Total outstanding dues of micro and small enterprises337.64361.79
  - Total outstanding dues of creditors other than micro and small enterprises10148.688155.83
 (iii) Other financial liabilities26884.8127153.97
 (b) Other current liabilities1270.95880.69
 (c) Provisions7579.297150.20
 (d) Current tax liabilities (net)47.7032.72
 Sub-total - Current liabilities64011.4159729.76
3Deferred revenue2600.182375.06
 TOTAL - EQUITY AND LIABILITIES338040.75317396.40

CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2019

(Rupee Crore)
Sl.No.ParticularsQuarter ended 30.09.2019 (Unaudited)Quarter ended 30.06.2019 (Unaudited)Quarter ended 30.09.2018
(Unaudited & not subjected to review) (refer note 2)
Six months ended 30.09.2019 (Unaudited)Six months ended 30.09.2018
(Unaudited & not subjected to review) (refer note 2)
Year 
ended 31.03.2019  (Audited)
12345678
1Segment revenue      
 - Generation23884.8524581.9122262.8248466.7644725.7191522.34
 - Others2224.342516.021722.784740.363816.857636.82
 - Less: Inter segment elimination846.89924.04443.501770.93878.351821.63
  25262.3026173.8923542.1051436.1947664.2197337.53
 - Unallocated12.2598.3524.55110.6050.94199.81
 Total25274.5526272.2423566.6551546.7947715.1597537.34
2Segment results (Profit before tax and interest)      
 - Generation6553.275768.975475.0112322.2411017.7214071.47
 - Others167.94179.2273.25347.16208.12384.46
 Total6721.215948.195548.2612669.4011225.8414455.93
 Less:      
 (i) Unallocated finance costs1805.051767.231443.853572.282787.135260.85
 (ii) Other unallocable expenditure net of unallocable income225.67101.39156.71327.06407.45823.17
 Profit before tax (including regulatory deferral account balances)4690.494079.573947.708770.068031.268371.91
3Segment assets      
 - Generation204144.13193009.70179091.63204144.13179091.63177305.53
 - Others8162.097949.306733.728162.096733.726587.89
 - Unallocated126163.73130473.11123505.80126163.73123505.80133826.36
 - Less: Inter segment elimination429.20444.39306.67429.20306.67323.38
 Total338040.75330987.72309024.48338040.75309024.48317396.40
4Segment liabilities      
 - Generation20942.3719993.4121601.5920942.3721601.5918103.12
 - Others5230.975305.513835.965230.973835.964401.86
 - Unallocated199076.90193309.87177532.35199076.90177532.35185177.81
 - Less:Inter segment elimination429.20444.39306.67429.20306.67323.38
 Total224821.04218164.40202663.23224821.04202663.23207359.41

The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Rupee  Crore)
Sl.No.ParticularsSix months ended
30 September 2019 (Unaudited)
Six months ended
30 September 2018 (Unaudited & not subjected to review)
(refer note 2)
Year ended 31 March 2019 (Audited)
ACASH FLOW FROM OPERATING ACTIVITIES   
 Profit before tax 7100.135813.5313627.94
 Add: Net movements in regulatory deferral account balances (net of tax)1378.092072.15(4200.90)
 Add: Tax on net movements in regulatory deferral account balances291.84145.58(1055.13)
 Profit before tax including movements in regulatory deferral account balances8770.068031.268371.91
 Adjustment for:   
 Depreciation, amortisation and impairment expense4477.733956.817688.10
 Provisions118.83122.98991.17
 Share of net profits of joint ventures accounted for using equity method(271.02)(263.17)(672.07)
 Deferred revenue on account of advance against depreciation-(51.10)(74.35)
 Deferred revenue on account of government grants(40.72)(37.63)(48.93)
 Deferred foreign currency fluctuation asset(245.24)(955.90)(251.53)
 Deferred income from foreign currency fluctuation362.771017.75371.78
 Regulatory deferral account debit balances(1669.93)(2217.73)5256.03
 Fly ash utilisation reserve fund25.4512.016.90
 Exchange differences on translation of foreign currency cash and cash equivalents-(0.05)0.01
 Finance costs3555.022775.725243.07
 Unwinding of discount on vendor liabilities17.2611.4117.78
 Interest/income on term deposits/bonds/investments(23.98)(30.57)(56.28)
 Dividend income-(4.80)(4.80)
 Provisions written back(31.33)(23.54)(317.03)
 Profit on de-recognition of property, plant and equipment(0.68)(1.52)(2.72)
 Loss on de-recognition of property, plant and equipment33.9651.00173.84
  6308.124361.6718320.97
 Operating profit before working capital changes15078.1812392.9326692.88
 Adjustment for:   
 Trade receivables(11568.80)(5378.70)(1336.60)
 Inventories1081.18681.00(1643.28)
 Trade payables, provisions, other financial liabilities and other liabilities2190.061833.89158.21
 Loans, other financial assets and other assets1250.261987.96(4465.09)
  (7047.30)(875.85)(7286.76)
 Cash generated from operations8030.8811517.0819406.12
 Income taxes (paid) / refunded(1460.10)(1404.33)(3038.99)
 Net cash from operating activities - A6570.7810112.7516367.13
B.CASH FLOW FROM INVESTING ACTIVITIES   
 Purchase of  property, plant and equipment & intangible assets(8230.97)(4952.20)(19825.85)
 Disposal of property, plant and equipment & intangible assets2.91-71.06
 Investment in joint venture companies(375.02)(103.58)(123.30)
 Payment for business acquisition-(2145.33)(2145.33)
 Acquisition of subsidiary, net of cash acquired-(1689.42)(1689.42)
 Interest/income on term deposits/bonds/investments received13.0327.0244.16
 Income tax paid on interest income(6.02)(9.01)(40.44)
 Dividend received from other investments-4.804.80
 Bank balances other than cash and cash equivalents(1092.12)(465.82)1465.45
 Net cash from/(used in) investing activities - B(9688.19)(9333.54)(22238.87)
C.CASH FLOW FROM FINANCING ACTIVITIES   
 Proceeds from non-current borrowings14770.658299.8627248.45
 Repayment of non-current borrowings(4759.21)(2509.97)(14084.37)
 Proceeds from current borrowings1747.78291.719314.18
 Payment of lease liabilities(4.63)(1.36)(8.51)
 Interest paid(5214.05)(4423.22)(10767.23)
 Dividend paid(2473.64)(1970.67)(4922.55)
 Tax on dividend(506.62)(400.96)(1004.60)
 Changes in ownership interest in subsidiary company-(69.21)(77.76)
 Net cash from/(used in) financing activities - C3560.28(783.82)5697.61
D.Exchange differences on translation of foreign currency cash and cash equivalents-0.05(0.01)
 Net increase/(decrease) in cash and cash equivalents (A+B+C+D)442.87(4.56)(174.14)
 Cash and cash equivalents at the beginning of the period208.97383.11383.11
 Cash and cash equivalents at the end of the period651.84378.55208.97

Notes to Consolidated Financial Results:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 9 November 2019 and approved by the Board of Directors in their meeting held on the same day.

2. The statutory auditors of the Company have carried out the limited review of these financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The comparative figures for the quarter and six months ended 30 September 2018 have been prepared by the Management and have not been subjected to limited review or audit. However, the Management has exercised necessary due diligence in preparing these results.

3. The subsidiary and joint venture companies considered in the consolidated financial results 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
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
5Ratnagiri Gas and Power Private Ltd.25.51
6Aravali Power Company Private Ltd.50.00
7Meja Urja Nigam Private Ltd.50.00
8NTPC BHEL Power Projects Private Ltd.50.00
9National High Power Test Laboratory Private Ltd.20.00
10Transformers and Electricals Kerala Ltd.44.60
11Energy Efficiency Services Ltd.47.15
12CIL NTPC Urja Private Ltd.50.00
13Anushakti Vidhyut Nigam Ltd.49.00
14Hindustan Urvarak and Rasayan Ltd.29.67
15Konkan LNG Private Ltd.14.82
16Trincomalee Power Company Ltd.50.00
17Bangladesh-India Friendship Power Company Private Ltd.50.00

All the above Companies are incorporated in India except Companies at Sl. No.16 and 17 which are incorporated in Srilanka and Bangladesh respectively.

During the quarter, the Company has incorporated a wholly owned subsidiary in the name of 'NTPC Mining Ltd.' on 29 August 2019 for taking up coal mining business. There were no financial transactions in the subsidiary company till 30 September 2019.

4 a) The CERC notified the Central Electricity Regulatory Commission (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 for all stations, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. Energy charges are billed as per the operational norms specified in  the Regulations 2019. The amount provisionally billed for the quarter and six months ended 30 September 2019 is Rupee 22,892.18 crore and Rupee 46,489.46 crore respectively (previous quarter and six months  Rupee 21,553.54 crore and Rupee 42,985.52 crore as per erstwhile Tariff Regulations, 2014).

b) Sales  for the quarter and six months ended 30 September 2019 have been provisionally recognized at Rupee 22,516.64 crore and Rupee 46,040.63 crore respectively (previous quarter and six months Rupee 21,511.90 crore and Rupee 43,277.45 crore) on the said basis.

c) Sales for the quarter and six months ended 30 September 2019 include Rupee 68.07 crore and Rupee 81.80 crore respectively (previous quarter and six months (-) Rupee 50.38 crore and (-) Rupee 135.90 crore) pertaining to previous years, recognized on the basis of orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) Sales for the quarter and six months ended 30 September 2019 also include Rupee 12.39 crore and Rupee 35.26 crore respectively (previous quarter and six months Rupee 20.89 crore and Rupee 41.78 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

e) Revenue from operations for the quarter and six months ended 30 September 2019 include Rupee 1,685.59 crore and Rupee 3,727.90 crore respectively (previous quarter and six months Rupee 1,649.43 crore and Rupee 3,686.71 crore) on account of sale of energy through trading.

5. Provision for current tax for the quarter and six months ended 30 September 2019 includes Rupee Nil (previous quarter and six months Rupee Nil and (-) Rupee 105.88 crore) being tax related to earlier years.

6. 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 environmental 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 three units of 800 MW each have since been declared commercial.  The carrying cost of the project as at 30 September 2019 is Rupee 15,451.60 crore (31 March 2019: Rupee15,598.80 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

7. 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 30 September 2019 is Rupee 163.39 crore (31 March 2019: Rupee163.33 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

8. Non-current assets - other financial assets includes Rupee726.85 crore (31 March 2019: Rupee 719.71 crore) towards the cost incurred upto 30 September 2019 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), GOI which includes Rupee419.19 crore (31 March 2019: Rupee413.40 crore) in respect of arbitration awards challenged by the Company before 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 Current liabilities - Provisions. 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.

9. 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 Rupee1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company.  An amount of Rupee356.31 crore (31 March 2019: Rupee356.31 crore) has since been deposited based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India.  In the previous year, the Arbitral Tribunal had awarded a claim of Rupee1,891.09 crore plus applicable interest in favour of the operator. The Company aggrieved by the arbitral award and considering  legal opinion obtained had filed an appeal before Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

Hon'ble High Court, vide its order dated 23 September 2019 held that subject to deposit of Rupee 500 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. It was further held that 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 has been deposited with the Hon'ble High Court on 5 November 2019.

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’, Significant Accounting Policies of the Company and the principle of  conservatism, an amount of Rupee394.15 crore (31 March 2019: Rupee394.07 crore) has since been provided for on an estimated basis as against the above claim and the balance is considered as contingent liability.

10. During the six months ended 30 September 2019, the Pakri Barwadih Coal Mine has been declared commercial w.e.f. 1 April 2019. Further, one thermal unit of 800 MW at Gadarwara w.e.f. 1 June 2019 and one thermal unit of 660 MW at Nabinagar Power Generating Co. Ltd. (a subsidiary of the Company) w.e.f. 6 September 2019 have been declared commercial.

11. During the quarter, the Company has paid final dividend of Rupee 2.50 per share (face value of Rupee10/- each) for the financial year 2018-19.

12. The Group has adopted Ind AS 116 'Leases' effective 1 April 2019, using modified retrospective approach and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments and right of use assets has been recognized at an amount equal to the lease liabilities. Application of Ind AS 116 does not have any material impact on the financial results of the Group.

13. Earning per share has been adjusted for the quarter  and six months ended 30 September 2018 as per Ind AS 33 'Earning per share' on account of issue of fully paid bonus shares during March 2019 in the ratio of one equity share of Rupee10/- each for every five equity shares held.

14. Formula used for computation of coverage ratios DSCR  = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings)  and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).

15. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property,plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.

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

 

For and on behalf of the Board of Directors

Place: New Delhi
Date: 09th November 2019

       (A.K.Gautam)
DIRECTOR(FINANCE)