New Delhi: NHPC Limited, India's premier hydropower company and a 'Miniratna' PSU under the Ministry of Power, has reported over 13 percent decline in its consolidated net profit in the first quarter of the current financial year (Q1 FY2020-21). The company has posted a net profit of Rs 855.49 crore for Q1 FY2020-21 against Rs 989.27 crore in the same period of the previous financial year (FY2019-20). The decline has been seen in the net profit of the company due to a rebate of Rs 185 crore given to discoms in view of the Covid-19 situation. Total income for the quarter under review rose marginally to Rs 2,914.02 crore from Rs 2,754.48 in the same period of last year. The information was shared by the power PSU in a regulatory filing to the stock exchanges on Monday.
Elaborating on the Coronavirus (COVID-19) impact, the company said, "The company's primary source of revenue is from the power generation and sale of hydroelectricity. During the outbreak of Covid-19, the government declared lockdown which has affected business in general." The company also stated that no material impact of Covid-19 on the financial performance of the company, including inter-alia the carrying value of various current and non-current assets or the ability to service the debt of the company, is expected to arise.
Further, "In line with the directions of the Ministry of Power (issued) on 15th & 16th May 2020, the company has given a one-time rebate of Rs 185 crore to the discoms and Power Departments of States/ Union territories for passing on to ultimate consumers on account of Covid-19 pandemic," the company said.
The rebate has been presented as an "exceptional item" it added in the statement of financial results.
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