NTPC Q2 Results: Profit Rise Over 13%, Beat Estimates

The muted growth in revenues was on the back of lower gross generation of power and marginal uptick in average tariffs.

NTPC's Q2 gross and commercial generation saw a 2.04% and 1.57% downtick on a year on year basis, respectively. The company's gross and commercial generation from solar and hydro stations, both stood at 88.463 billion units in Q2.

The company's Ebitda fell 10% year on year, which led to a 210 basis point margin contraction. Pressure on margins was mainly on the back of a 57% jump in the company's "other expenses"

NTPC's rise in profits was mainly on the back of a Rs 2336 crore net movement in regulatory deferral accounts balances.

"Net movement in regulatory deferral accounts" is a term particularly used in regulated industries like utilities. It essentially represents the change in the balance of these accounts over a specific period. These accounts are used to track the difference between a regulated entity's allowed revenue and its actual revenue. The difference can arise due to rate making lags, regulatory adjustment and differed taxes.

If the balance of the regulatory deferral accounts increases, it generally indicates that the company has collected more revenue than it was allowed to earn. This can lead to higher profits.