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

(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)
1	2	3	4	5	6	7	8
1	Income
	(a) Revenue from operations	22764.57	24192.59	22261.08	46957.16	44964.68	90307.43
	(b) Other income	893.66	326.22	224.88	1219.88	361.26	1872.13
	Total income (a+b)	23658.23	24518.81	22485.96	48177.04	45325.94	92179.56
2	Expenses
	(a)Fuel cost	12912.21	13874.33	12872.48	26786.54	25991.22	52493.74
	(b) Electricity purchased for trading	568.85	784.48	613.12	1353.33	1293.95	2713.68
	(c) Employee benefits expense	1137.15	1195.81	1185.55	2332.96	2427.44	4779.89
	(d) Finance costs	1618.99	1565.26	1294.11	3184.25	2514.04	4716.74
	(e)Depreciation, amortisation and impairment expense	2123.14	2050.95	1888.45	4174.09	3748.60	7254.36
	(f)Other expenses	1800.17	1885.59	1997.57	3685.76	3704.88	7548.63
	Total expenses (a+b+c+d+e+f)	20160.51	21356.42	19851.28	41516.93	39680.13	79507.04
3	Profit before tax and Regulatory deferral account balances (1-2)	3497.72	3162.39	2634.68	6660.11	5645.81	12672.52
4	Tax expense:
	(a)Current tax (refer Note 4)	498.21	696.40	580.76	1194.61	1166.05	2849.12
	(b)Deferred tax	604.82	373.81	782.42	978.63	1537.66	(5767.83)
	Total tax expense (a+b)	1103.03	1070.21	1363.18	2173.24	2703.71	(2918.71)
5	Profit after tax before Regulatory deferral account balances (3-4)	2394.69	2092.18	1271.50	4486.87	2942.10	15591.23
6	Net movement in Regulatory deferral account balances (net of tax)	867.75	510.61	1154.52	1378.36	2072.06	(3841.34)
7	Profit for the period (5+6)	3262.44	2602.79	2426.02	5865.23	5014.16	11749.89
8	Other 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)
9	Total comprehensive income for the period (7+8)	3193.35	2545.08	2417.60	5738.43	4994.30	11548.02
10	Paid-up equity share capital (Face value of share10/- each)	9894.56	9894.56	8245.46	9894.56	8245.46	9894.56
11	Paid-up debt capital$				137640.75	122851.53	127430.48
12	Other equity excluding revaluation reserve as per balance sheet				100294.97	96166.99	97513.61
13	Net worth*				109529.71	103769.23	106771.54
14	Debenture redemption reserve				7469.93	7093.81	7902.43
15	Earnings per share (of10/- each) - (not annualised) (including regulatory deferral account balances): Basic and Diluted (in) (Refer Note 13)	3.30	2.63	2.45	5.93	5.07	11.88
16	Earnings per share (of10/- each) - (not annualised) (excluding regulatory deferral account balances): Basic and Diluted (in) (Refer Note 13)	2.42	2.11	1.29	4.53	2.97	15.76
17	Debt equity ratio				1.26	1.18	1.19
18	Debt service coverage ratio (DSCR)				2.06	2.39	2.21
19	Interest service coverage ratio (ISCR)				4.43	4.77	5.26

 

^$Comprises long term debts
* Excluding Fly ash utilization reserve
See accompanying notes to the financial results.
STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Crore)

 

Sl.No.	Particulars		As at 30.09.2019 (Unaudited)	As at 31.03.2019 (Audited)
A	ASSETS
1	Non-current assets
	(a) Property, plant and equipment		130054.46	125290.68
	(b) Capital work-in-progress		92113.67	90808.89
	(c) Intangible assets		336.88	329.94
	(d) Intangible assets under development		420.88	397.80
	(e) Investments in subsidiaries and joint venture companies		13822.54	13054.02
	(f) Financial assets
		(i) Investments	71.34	91.92
		(ii) Loans	597.39	544.38
		(iii) Other financial assets	1724.58	1424.29
	(g) Other non-current assets		13347.51	13269.30
	Sub-total - Non-current assets		252489.25	245211.22
2	Current assets
	(a) Inventories		7061.88	7988.02
	(b) Financial assets
		(i) Trade receivables	19432.09	8433.86
		(ii) Cash and cash equivalents	62.17	24.38
		(iii) Bank balances other than cash and cash equivalents	3365.16	2119.96
		(iv) Loans	405.09	305.79
		(v) Other financial assets	9241.53	8331.84
	(c) Other current assets		13122.84	15056.70
	Sub-total - Current assets		52690.76	42260.55
3	Regulatory deferral account debit balances		5017.97	3406.00
	TOTAL - ASSETS		310197.98	290877.77
B	EQUITY AND LIABILITIES
1	Equity
	(a)	Equity share capital	9894.56	9894.56
	(b)	Other equity	100294.97	97513.61
	Sub-total - Total equity		110189.53	107408.17
2	Liabilities
(i)	Non-current liabilities
	(a) Financial liabilities
	(i) Borrowings		131200.63	119698.08
	(ii) Trade payables
		- Total outstanding dues of micro and small enterprises	7.35	6.41
		- Total outstanding dues of creditors other than micro and small enterprises	49.70	41.76
	(iii) Other financial liabilities		1240.16	1314.29
	(b)Provisions		590.94	588.74
	(c) Deferred tax liabilities (net)		5120.57	4200.14
	Sub-total - Non-current liabilities		138209.35	125849.42
(ii)	Current liabilities
	(a) Financial liabilities
	(i) Borrowings		17268.05	15502.90
	(ii) Trade payables
		- Total outstanding dues of micro and small enterprises	327.56	353.41
		- Total outstanding dues of creditors other than micro and small enterprises	9185.30	7197.53
	(iii) Other financial liabilities		24327.78	24902.27
	(b) Other current liabilities		1035.83	684.34
	(c) Provisions		7267.46	6840.36
	Sub-total - Current liabilities		59411.98	55480.81
3	Deferred revenue		2387.12	2139.37
	TOTAL - EQUITY AND LIABILITIES		310197.98	290877.77

 

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

(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)
1	2	3	4	5	6	7	8
1	Segment revenue
	- Generation	22811.08	23516.93	21752.05	46328.01	43735.65	88702.38
	- Others	1113.01	1300.42	699.11	2413.43	1522.82	3241.51
	- Less: Inter segment elimination	387.25	382.97	-	770.22	-	-
		23536.84	24434.38	22451.16	47971.22	45258.47	91943.89
	- Unallocated	121.39	84.43	34.80	205.82	67.47	235.67
	Total	23658.23	24518.81	22485.96	48177.04	45325.94	92179.56
2	Segment results (Profit before tax and interest)
	- Generation	6256.33	5486.21	5409.80	11742.54	10867.48	13724.83
	- Others	120.12	154.73	58.27	274.85	164.10	389.72
	Total	6376.45	5640.94	5468.07	12017.39	11031.58	14114.55
	Less:
	(i) Unallocated finance costs	1618.99	1565.26	1294.11	3184.25	2514.04	4716.74
	(ii) Other unallocable expenditure net of unallocable income	240.44	262.42	283.16	502.86	654.09	1621.76
	Profit before tax (including regulatory deferral account balances)	4517.02	3813.26	3890.80	8330.28	7863.45	7776.05
3	Segment assets
	- Generation	183337.94	178489.85	167837.36	183337.94	167837.36	163073.92
	- Others	5995.32	5817.95	5108.67	5995.32	5108.67	4661.17
	- Unallocated	120864.72	119259.52	111784.29	120864.72	111784.29	123142.68
	Total	310197.98	303567.32	284730.32	310197.98	284730.32	290877.77
4	Segment liabilities
	- Generation	18325.53	17472.57	15623.17	18325.53	15623.17	15748.31
	- Others	3582.22	3597.53	2592.49	3582.22	2592.49	2869.85
	- Unallocated	178100.70	172535.33	162102.21	178100.70	162102.21	164851.44
	Total	200008.45	193605.43	180317.87	200008.45	180317.87	183469.60

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

(Crore)

 

Sl.No.	Particulars		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)
A	CASH FLOW FROM OPERATING ACTIVITIES
	Profit before tax		6660.11	5645.81	12672.52
	Add: Net movements in regulatory deferral account balances (net of tax)		1378.36	2072.06	(3841.34)
	Add: Tax on net movements in regulatory deferral account balances		291.81	145.58	(1055.13)
	Profit before tax including movements in regulatory deferral account balances		8330.28	7863.45	7776.05
	Adjustment for:
	Depreciation, amortisation and impairment expense		4174.09	3748.60	7254.36
	Provisions		118.25	122.98	1150.07
	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 fluctuation		362.77	1017.75	371.78
	Regulatory deferral account debit balances		(1670.17)	(2217.63)	4896.47
	Fly ash utilisation reserve fund		23.19	12.01	5.42
	Exchange differences on translation of foreign currency cash and cash equivalents		-	(0.05)	0.01
	Finance costs		3166.99	2502.63	4699.00
	Unwinding of discount on vendor liabilities		17.26	11.41	17.74
	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 equipment		33.96	50.99	173.84
			5819.80	4152.13	17693.00
	Operating profit before working capital changes		14150.08	12015.58	25469.05
	Adjustment for:
	Trade receivables		(10998.23)	(5197.63)	(855.89)
	Inventories		1150.22	687.35	(1607.99)
	Trade payables, provisions, other financial liabilities and other liabilities		2027.20	2728.43	588.34
	Loans, other financial assets and other assets		1120.56	1717.16	(4537.50)
			(6700.25)	(64.69)	(6413.04)
	Cash generated from operations		7449.83	11950.89	19056.01
	Income taxes (paid) / refunded		(1401.02)	(1376.78)	(3025.54)
	Net cash from/(used in) operating activities - A		6048.81	10574.11	16030.47
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 assets		2.91	-	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 received		16.38	34.92	55.93
	Income tax paid on interest income		(5.43)	(8.22)	(39.46)
	Dividend received		83.65	8.30	124.19
	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 borrowings		12960.58	7040.81	24844.83
	Repayment of non-current borrowings		(3632.53)	(2481.82)	(13839.47)
	Proceeds from current borrowings		1765.15	45.75	9002.58
	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)		37.79	13.62	(36.11)
	Cash and cash equivalents at the beginning of the period		24.38	60.49	60.49
	Cash and cash equivalents at the end of the period		62.17	74.11	24.38

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. 1. 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 is21,809.57 crore and44,934.10 crore respectively (previous quarter and six months 21,394.54 crore and42,874.51 crore as per erstwhile Tariff Regulations, 2014).
   2. Sales for the quarter and six months ended 30 September 2019 have been provisionally recognized at21,860.88 crore and44,886.54 crore respectively (previous quarter and six months21,450.41 crore and43,166.44 crore) on the said basis.
   3. Sales for the quarter and six months ended 30 September 2019 include68.07 crore and56.43 crore respectively (previous quarter and six months (-)50.38 crore and (-)135.90 crore) pertaining to previous years, recognized on the basis of orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).
   4. Sales for the quarter and six months ended 30 September 2019 also include12.39 crore and35.26 crore respectively (previous quarter and six months20.89 crore and41.78 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.
   5. Revenue from operations for the quarter and six months ended 30 September 2019 include601.18 crore and1,425.91 crore respectively (previous quarter and six months631.08 crore and1,403.46 crore) on account of sale of energy through trading.
4. Provision for current tax for the quarter and six months ended 30 September 2019 includesNil (previous quarter and six monthsNil and (-)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 is15,451.60 crore (31 March 2019:15,598.80 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 is163.39 crore (31 March 2019:163.33 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 includes726.85 crore (31 March 2019:719.71 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 includes419.19 crore (31 March 2019:413.40 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 at1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. An amount of356.31 crore (31 March 2019:356.31 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 of1,891.09 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 of500 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 of394.15 crore (31 March 2019:394.07 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 of2.50 per share (face value of10/- 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 of10/- 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 UNAUDITEDCONSOLIDATEDFINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2019

(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)
1	2		3	4	5	6	7	8
1	Income
	(a) Revenue from operations		24459.70	25931.11	23347.95	50390.81	47361.18	95742.03
	(b) Other income		814.85	341.13	218.70	1155.98	353.97	1795.31
	Total income (a+b)		25274.55	26272.24	23566.65	51546.79	47715.15	97537.34
2	Expenses
	(a)Fuel cost		13370.72	14420.66	13138.33	27791.38	26490.15	53833.78
	(b) Electricity purchased for trading		1221.06	1443.04	1176.43	2664.10	2673.31	5288.12
	(c) Employee benefits expense		1176.88	1221.11	1211.44	2397.99	2467.75	4907.59
	(d) Finance costs		1805.05	1767.23	1443.85	3572.28	2787.13	5260.85
	(e)Depreciation, amortisation and impairment expense		2285.58	2192.15	1994.49	4477.73	3956.81	7688.10
	(f)Other expenses		1867.85	1946.35	2048.94	3814.20	3789.64	7603.03
	Total expenses (a+b+c+d+e+f)		21727.14	22990.54	21013.48	44717.68	42164.79	84581.47
3	Profit before tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)		3547.41	3281.70	2553.17	6829.11	5550.36	12955.87
4	Share of net profits of joint ventures accounted for using equity method		123.91	147.11	136.70	271.02	263.17	672.07
5	Profit before tax andRegulatory deferral account balances (3-4)		3671.32	3428.81	2689.87	7100.13	5813.53	13627.94
6	Tax expense:
	(a)Current tax (refer Note 4)		525.05	725.22	586.40	1250.27	1181.78	2916.31
	(b)Deferred tax		604.94	373.81	782.42	978.75	1537.66	(6122.72)
	Total tax expense (a+b)		1129.99	1099.03	1368.82	2229.02	2719.44	(3206.41)
7	Profit after tax before Regulatory deferral account balances (5-6)		2541.33	2329.78	1321.05	4871.11	3094.09	16834.35
8	Net movement in Regulatory deferral account balances (net of tax)		867.59	510.50	1156.23	1378.09	2072.15	(4200.90)
9	Profit for the period (7+8)		3408.92	2840.28	2477.28	6249.20	5166.24	12633.45
10	Other 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 operations	7.91	(2.42)	20.47	5.49	28.35	11.67
	Other comprehensive income/(expense) (net of tax) (a+b)		(61.76)	(60.45)	12.45	(122.21)	8.98	(191.27)
11	Total comprehensive income (9+10)		3347.16	2779.83	2489.73	6126.99	5175.22	12442.18
12	Profit attributable to owners of the parent		3400.84	2837.12	2493.86	6237.96	5194.85	12640.02
13	Profit attributable to non-controlling interest		8.08	3.16	(16.58)	11.24	(28.61)	(6.57)
14	Other comprehensive income/(expense) attributable to owners of the parent		(61.76)	(60.45)	12.45	(122.21)	8.98	(191.27)
15	Other comprehensive income/(expense) attributable to non controlling interest		-	-	-	-	-	-
16	Paid-up equity share capital (Face value of share10/- each)		9894.56	9894.56	8245.46	9894.56	8245.46	9894.56
17	Paid-up debt capital$					156604.98	140250.21	145723.29
18	Other equity excluding revaluation reserve as per balance sheet					103325.15	98115.79	100142.43
19	Net worth*					112553.76	105717.79	109396.49
20	Debenture redemption reserve					7469.93	7093.81	7902.43
21	Earnings per share (of10/- each) - (not annualised) (including regulatory deferral account balances): Basic and Diluted (in) (Refer Note 13)		3.43	2.87	2.52	6.30	5.25	12.77
22	Earnings per share (of10/- each) - (not annualised) (excluding regulatory deferral account balances): Basic and Diluted (in) (Refer Note 13)		2.56	2.35	1.35	4.91	3.16	17.02
23	Debt equity ratio					1.39	1.33	1.33
24	Debt service coverage ratio (DSCR)					1.82	2.38	2.23
25	Interest service coverage ratio (ISCR)					4.27	4.53	5.09

$ 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

(Crore)

 

Sl.No.	Particulars		As at 30.09.2019 (Unaudited)	As at 31.03.2019 (Audited)
A	ASSETS
1	Non-current assets
	(a) Property, plant and equipment		148125.22	137490.86
	(b) Capital work-in-progress		102951.75	106379.66
	(c) Intangible assets		337.84	330.50
	(d) Intangible assets under development		420.88	397.80
	(e) Investments accounted for using the equity method		8740.47	8008.06
	(f) Financial assets
		(i) Investments	71.34	91.92
		(ii) Loans	436.56	434.38
		(iii) Other financial assets	1223.99	1302.70
	(g) Other non-current assets		14115.92	14043.96
	Sub-total - Non-current assets		276423.97	268479.84
2	Current assets
	(a) Inventories		7270.63	8119.43
	(b) Financial assets
		(i) Trade receivables	21715.37	10147.68
		(ii) Cash and cash equivalents	651.84	208.97
		(iii) Bank balances other than cash and cash equivalents	3676.42	2573.35
		(iv) Loans	252.42	238.29
		(v) Other financial assets	9509.45	8807.14
	(c) Other current assets		13511.01	15403.80
	Sub-total - Current assets		56587.14	45498.66
3	Regulatory deferral account debit balances		5029.64	3417.90
	TOTAL - ASSETS		338040.75	317396.40
B	EQUITY AND LIABILITIES
1	Equity
	(a)	Equity share capital	9894.56	9894.56
	(b)	Other equity	103325.15	100142.43
	Total equity attributable to the owners of the parent		113219.71	110036.99
	Non controlling interest		778.42	664.83
	Sub-total - Total equity		113998.13	110701.82
2	Liabilities
(i)	Non-current liabilities
	(a) Financial liabilities
	(i)Borrowings		149963.43	137792.88
	(ii) Trade payables
		- Total outstanding dues of micro and small enterprises	7.35	6.41
		- Total outstanding dues of creditors other than micro and small enterprises	49.72	41.80
	(iii) Other financial liabilities		1698.79	1959.86
	(b) Provisions		591.47	589.09
	(c) Deferred tax liabilities (net)		5120.27	4199.72
	Sub-total - Non-current liabilities		157431.03	144589.76
(ii)	Current liabilities
	(a) Financial liabilities
	(i) Borrowings		17742.34	15994.56
	(ii) Trade payables
		- Total outstanding dues of micro and small enterprises	337.64	361.79
		- Total outstanding dues of creditors other than micro and small enterprises	10148.68	8155.83
	(iii) Other financial liabilities		26884.81	27153.97
	(b) Other current liabilities		1270.95	880.69
	(c) Provisions		7579.29	7150.20
	(d) Current tax liabilities (net)		47.70	32.72
	Sub-total - Current liabilities		64011.41	59729.76
3	Deferred revenue		2600.18	2375.06
	TOTAL - EQUITY AND LIABILITIES		338040.75	317396.40

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

(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)
1	2	3	4	5	6	7	8
1	Segment revenue
	- Generation	23884.85	24581.91	22262.82	48466.76	44725.71	91522.34
	- Others	2224.34	2516.02	1722.78	4740.36	3816.85	7636.82
	- Less: Inter segment elimination	846.89	924.04	443.50	1770.93	878.35	1821.63
		25262.30	26173.89	23542.10	51436.19	47664.21	97337.53
	- Unallocated	12.25	98.35	24.55	110.60	50.94	199.81
	Total	25274.55	26272.24	23566.65	51546.79	47715.15	97537.34
2	Segment results (Profit before tax and interest)
	- Generation	6553.27	5768.97	5475.01	12322.24	11017.72	14071.47
	- Others	167.94	179.22	73.25	347.16	208.12	384.46
	Total	6721.21	5948.19	5548.26	12669.40	11225.84	14455.93
	Less:
	(i) Unallocated finance costs	1805.05	1767.23	1443.85	3572.28	2787.13	5260.85
	(ii) Other unallocable expenditure net of unallocable income	225.67	101.39	156.71	327.06	407.45	823.17
	Profit before tax (including regulatory deferral account balances)	4690.49	4079.57	3947.70	8770.06	8031.26	8371.91
3	Segment assets
	- Generation	204144.13	193009.70	179091.63	204144.13	179091.63	177305.53
	- Others	8162.09	7949.30	6733.72	8162.09	6733.72	6587.89
	- Unallocated	126163.73	130473.11	123505.80	126163.73	123505.80	133826.36
	- Less: Inter segment elimination	429.20	444.39	306.67	429.20	306.67	323.38
	Total	338040.75	330987.72	309024.48	338040.75	309024.48	317396.40
4	Segment liabilities
	- Generation	20942.37	19993.41	21601.59	20942.37	21601.59	18103.12
	- Others	5230.97	5305.51	3835.96	5230.97	3835.96	4401.86
	- Unallocated	199076.90	193309.87	177532.35	199076.90	177532.35	185177.81
	- Less:Inter segment elimination	429.20	444.39	306.67	429.20	306.67	323.38
	Total	224821.04	218164.40	202663.23	224821.04	202663.23	207359.41

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

(Crore)

 

Sl.No.	Particulars		Six 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)
A	CASH FLOW FROM OPERATING ACTIVITIES
	Profit before tax		7100.13	5813.53	13627.94
	Add: Net movements in regulatory deferral account balances (net of tax)		1378.09	2072.15	(4200.90)
	Add: Tax on net movements in regulatory deferral account balances		291.84	145.58	(1055.13)
	Profit before tax including movements in regulatory deferral account balances		8770.06	8031.26	8371.91
	Adjustment for:
	Depreciation, amortisation and impairment expense		4477.73	3956.81	7688.10
	Provisions		118.83	122.98	991.17
	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 fluctuation		362.77	1017.75	371.78
	Regulatory deferral account debit balances		(1669.93)	(2217.73)	5256.03
	Fly ash utilisation reserve fund		25.45	12.01	6.90
	Exchange differences on translation of foreign currency cash and cash equivalents		-	(0.05)	0.01
	Finance costs		3555.02	2775.72	5243.07
	Unwinding of discount on vendor liabilities		17.26	11.41	17.78
	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 equipment		33.96	51.00	173.84
			6308.12	4361.67	18320.97
	Operating profit before working capital changes		15078.18	12392.93	26692.88
	Adjustment for:
	Trade receivables		(11568.80)	(5378.70)	(1336.60)
	Inventories		1081.18	681.00	(1643.28)
	Trade payables, provisions, other financial liabilities and other liabilities		2190.06	1833.89	158.21
	Loans, other financial assets and other assets		1250.26	1987.96	(4465.09)
			(7047.30)	(875.85)	(7286.76)
	Cash generated from operations		8030.88	11517.08	19406.12
	Income taxes (paid) / refunded		(1460.10)	(1404.33)	(3038.99)
	Net cash from operating activities - A		6570.78	10112.75	16367.13
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 assets		2.91	-	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 received		13.03	27.02	44.16
	Income tax paid on interest income		(6.02)	(9.01)	(40.44)
	Dividend received from other investments		-	4.80	4.80
	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 borrowings		14770.65	8299.86	27248.45
	Repayment of non-current borrowings		(4759.21)	(2509.97)	(14084.37)
	Proceeds from current borrowings		1747.78	291.71	9314.18
	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 - C		3560.28	(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 period		208.97	383.11	383.11
	Cash and cash equivalents at the end of the period		651.84	378.55	208.97

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 Companies		Ownership (%)
   1	NTPC Electric Supply Company Ltd.		100.00
   2	NTPC Vidyut Vyapar Nigam Ltd.		100.00
   3	Kanti Bijlee Utpadan Nigam Ltd.		100.00
   4	Nabinagar Power Generating Company Ltd.		100.00
   5	Bhartiya Rail Bijlee Company Ltd.		74.00
   6	Patratu Vidyut Utpadan Nigam Ltd.		74.00
   b)	Joint Venture Companies
   1	Utility Powertech Ltd.		50.00
   2	NTPC GE Power Services Private Ltd.		50.00
   3	NTPC SAIL Power Company Ltd.		50.00
   4	NTPC Tamilnadu Energy Company Ltd.		50.00
   5	Ratnagiri Gas and Power Private Ltd.		25.51
   6	Aravali Power Company Private Ltd.		50.00
   7	Meja Urja Nigam Private Ltd.		50.00
   8	NTPC BHEL Power Projects Private Ltd.		50.00
   9	National High Power Test Laboratory Private Ltd.		20.00
   10	Transformers and Electricals Kerala Ltd.		44.60
   11	Energy Efficiency Services Ltd.		47.15
   12	CIL NTPC Urja Private Ltd.		50.00
   13	Anushakti Vidhyut Nigam Ltd.		49.00
   14	Hindustan Urvarak and Rasayan Ltd.		29.67
   15	Konkan LNG Private Ltd.		14.82
   16	Trincomalee Power Company Ltd.		50.00
   17	Bangladesh-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. 1. 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 is22,892.18 crore and46,489.46 crore respectively (previous quarter and six months 21,553.54 crore and42,985.52 crore as per erstwhile Tariff Regulations, 2014).
   2. Sales for the quarter and six months ended 30 September 2019 have been provisionally recognized at22,516.64 crore and46,040.63 crore respectively (previous quarter and six months21,511.90 crore and43,277.45 crore) on the said basis.
   3. Sales for the quarter and six months ended 30 September 2019 include68.07 crore and81.80 crore respectively (previous quarter and six months (-)50.38 crore and (-)135.90 crore) pertaining to previous years, recognized on the basis of orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).
   4. Sales for the quarter and six months ended 30 September 2019 also include12.39 crore and35.26 crore respectively (previous quarter and six months20.89 crore and41.78 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.
   5. Revenue from operations for the quarter and six months ended 30 September 2019 include1,685.59 crore and3,727.90 crore respectively (previous quarter and six months1,649.43 crore and3,686.71 crore) on account of sale of energy through trading.
5. Provision for current tax for the quarter and six months ended 30 September 2019 includesNil (previous quarter and six monthsNil and (-)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 is15,451.60 crore (31 March 2019:15,598.80 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 is163.39 crore (31 March 2019:163.33 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 includes726.85 crore (31 March 2019:719.71 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 includes419.19 crore (31 March 2019:413.40 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.
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 at1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. An amount of356.31 crore (31 March 2019:356.31 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 of1,891.09 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 of500 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 of394.15 crore (31 March 2019:394.07 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 of2.50 per share (face value of10/- 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 of10/- 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
(A.K.Gautam)
DIRECTOR(FINANCE) Place: New Delhi
Date: 09^thNovember 2019