State-owned power producer NTPC reported a net profit of ₹34.2 billion (~$414.6 million) for the second quarter of the current fiscal year, a dip of 7.4% compared to the same period a year ago.

The fall in net profit is primarily due to 51% higher fuel cost, which inflated the total expenses for the quarter to ₹272.2 billion ($3.3 billion). Total expenses for the quarter rose by nearly 42% compared to the same quarter the previous year.

The company’s total income grew by 35% to ₹446.8 billion (~$5.4 billion) on the back of a 37% increase in revenue from power generation, which stood at ₹432.8 billion (~$5.2 billion).

For the first half of the financial year (1HFY23), the company’s net profit surged by 9.8% to ₹70.4 billion (~$854 million) compared with the corresponding period a year ago. NTPC’s consolidated income for the period stood at ₹882.4 billion (~$10.6 billion), an increase of 39% year-over-year.

During the April-September period, NTPC Group generated 204 billion units (BU) of power, up by 15.2%. The company said that its standalone gross generation for 1H surged by 16% to 176 BU.

On July 8, NPTC’s board approved the transfer of 15 renewable energy assets of the company to its wholly owned subsidiary NTPC Green Energy Limited (NGEL), through a business transfer agreement. The company will also transfer the 100% equity stake held in NTPC Renewable Energy (a wholly-owned subsidiary of NTPC) at a cost to NTPC Green through a share purchase agreement. These transfers are yet to be completed.

NTPC Renewable Energy has also incorporated Green Valley Renewable Energy as a subsidiary in a 51:49 joint venture (JV) with Damodar Valley Corporation (DVC) during the quarter. The JV is to develop, operate and maintain renewable energy parks and projects in reservoirs and land owned by DVC. There were no transactions in this company during the quarter.

During Q2, NTPC Renewable Energy and Avaada Energy were declared winners in the Maharashtra State Electricity Distribution Company Limited’s auction to procure power from 500 MW grid-connected inter or intrastate projects (Phase-VIII) on a long-term basis.

Earlier this year, Prime Minister Narendra Modi laid the foundation stone for NTPC’s renewable projects totaling ₹52 billion (~$665 million).