NHPC's Profit Takes a Hit amidst Rising Expenses

State-owned NHPC reported a 37% decline in net profit for the September quarter, attributed to exceptional expenses. Despite an increase in total income, expenses also rose significantly. The firm settled contractor claims under the Vivad se Vishwas II Scheme, impacting their financial results.

State-owned NHPC has reported a significant 37% drop in consolidated net profit for the September quarter, with figures falling to Rs 1,069.28 crore compared to the Rs 1,693.26 crore recorded in the same period last year. The decline comes as a result of exceptional expenses.

Despite a rise in total income to Rs 3,402.09 crore, up from Rs 3,113.82 crore in the second quarter of the previous fiscal year, the company faced soaring expenses. Total expenses climbed to Rs 1,831.08 crore, compared to Rs 1,573.54 crore in the corresponding quarter of FY24.

NHPC's financial statements revealed that the company incurred substantial costs paying interest on contractor claims resolved under the government's Vivad se Vishwas II Scheme. These claims amounted to Rs 203.12 crore for the quarter and Rs 350.03 crore for the half-year ending September 30, 2024.

(With inputs from agencies.)