NTPC Ltd

NSE:NTPC

Earnings Call Transcript 2019-Q4

[Operator]

Ladies and gentlemen, good day, and welcome to NTPC Limited FY '19 Earnings Conference Call.[Technical Difficulty][Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Harshavardhan Dole from IIFL Securities. Thank you, and over to you, sir.

[Harshavardhan S. Dole, Vice President]

Thank you, Rayman. Hello, everyone. On behalf of IIFL, I welcome you all for the Fourth Quarter FY '19 Post Earnings Conference Call of NTPC. To discuss the results in detail, today, we have the entire senior management team of NTPC with us. The team is represented by Mr. K. Sreekant, Director, Finance. Mr. S. Roy, Director, HR; Mr. A. K. Gupta, Director, Commercial; Mr. S.K. Roy, Director, Projects; Mr. P.K. Mohapatra, Director, Technical; Mr. Prakash Tiwari, Director, Operations; and Mr. Sudhir Arya, CFO and Executive Director Finance. I would request the management to give us an overview of the quarter gone by and how do they see the year coming ahead. Without much of a delay, I hand the call to the management. After which, we will open the lines for the Q&A. Over to you, sir.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

A very good afternoon, everybody. I am K. Sreekant, Director, Finance. Today, the company has announced the audited annual financial results for FY '19, along with the unaudited financial results for Q4 FY '19. The key performance highlights for the financial year and quarter have already been disclosed on both the stock exchanges. Operational highlights for Q4 and FY '19 full year. Annual generation of NTPC Group surpassed 300 billion units and the installed capacity crossed 55 gigawatts. The gross generation of NTPC Group increased by 12 billion units to 306 billion units, registering an increase of 3.95% during FY '19. The group contributed over 22% to the country's generation, excluding Bhutan imports. Q4 FY '19 recorded a generation of 78 billion units, registering an increase of 1.6 billion units or 2.1% over Q4 FY '18. NTPC Group posted highest ever single day generation of 935 million units on 12th March 2019. In FY '19, NTPC stand-alone gross generation increased by 8.7 billion units to 274 billion units, registering an increase of 3.3% over the previous year. In Q4 FY '19, we generated 69.2 billion units, against 68.6 billion units during Q4 FY '18. On a stand-alone basis, NTPC posted highest ever single day generation of 836 million units on 29th March 2019. In Q4 FY '19, we have added 1,960 megawatts, comprising 800 megawatts at Gadarwara, 660 megawatts at Solapur, 250 megawatts at Bongaigaon and 250 megawatts at BRBCL. With these additions, the installed capacity of NTPC has become 47,325 megawatt on stand-alone basis and 55,126 megawatts for the group.The total commercial capacity added to NTPC Group during quarter 4 FY '19 was 1,160 megawatts, comprising 660 megawatts at Solapur, 250 megawatt each at Bongaigaon and BRBCL. With this, the commercial capacity of NTPC has become 45,725 megawatt on stand-alone basis and 52,866 megawatts for the group as at 31st March 2019. In FY '19, 5 coal stations of NTPC were among the top 10 performing stations in the country in terms of PLF. Sipat with 91.58%; Vindhyachal with 90.03%; Talcher Thermal with 89.46%, Korba, 88.18%; and Rihand, 86.33% were ranked second, fourth, fifth, seventh and 10th, respectively. 6 stations of NTPC clocked over 85% PLF in the year. During FY '19, NTPC maintained a spread of above 15% over national PLF. PLF of NTPC coal stations were 76.68% as against the national average of 61.07%. National average, excluding PLF of NTPC stations, works out to be 56.01%. Due to grid restrictions, coal-based stations suffered a loss of generation of 12 billion units in Q4 FY '19 and 36 billion units in FY '19. Similarly, for the gas-based stations, the loss was 7 billion units in the quarter and 26 billion units for the full year. The generation loss on account of fuel supply constraints in the coal-based stations were [ 0.6 billion ] units in the quarter and 8.2 billion units in the full year compared to [ 10-point billion ] units last year, there is an improvement in the coal supplies in this regard.NTPC RE stations recorded generation of 4.5 billion units in FY '19 against 4.6 billion units in previous year. During the quarter, approximately 2 million metric tonnes of coal. 1.4 MMT last year corresponding period has been excavated from Pakri Barwadih coal mine. Total 6.8 MMT coal has been excavated during the year compared to 2.7 million metric tonnes last year. Commercial operation of the mine has been declared with effect from 1st April 2019. From Dulanga, we have excavated 0.5 million metric tonnes of coal during the current year. Cumulative expenditure of INR 6,245 crores has been incurred on the development of coal mines until 31st March, '19. During the year, the expenditure incurred was INR 1,181 crores. In Q4 FY '19, NTPC had participated in the 250-megawatt tender floated by SECI for Dondaicha Solar Park and 100-megawatt of capacity at a levelized tariff of INR 2.91 per unit applicable for 25 years. This solar project shall be set up by NTPC under EPC mode and shall add to the installed capacity of the company. With this, NTPC's total solar capacity 100 tariff-based competitive bidding has gone up to 345 megawatts.Investment approval has been accorded in February 2019 for 85-megawatt solar plant at Bilhaur solar PV project won by NTPC. NTPC has signed an agreement with Indian Railways Hazipur for transportation of fly ash by Bogey Tank For Alumina Powder, BTAP rakes, under Special Freight Train Operator scheme. This is the first SFTO agreement between railway and any entity in India. NTPC has placed an award for setting up 400 serving stations across various cities and highways. MoU has been signed with various states, city administrations and with major vehicle aggregator fleet operators. NTPC has signed an MoU to form a joint venture with East Delhi Municipal Corporation for setting up waste-to-energy plant. The plant is expected to process 2,000 tonnes of municipal waste per day. NTPC has signed a supplementary joint venture agreement with GE Power Systems to make foray in EPC market for setting up FGD system for state utilities and waste-to-energy projects, both of which are emerging markets in the country. NTPC has qualified for RFQ submitted for setting up a 600-megawatt solar PV project on West of Nile River, Egypt.Environmental management initiative. Flue gas desulfurizing systems are under various stages of implementation in 64.85 gigawatts of group capacity. The first FGD of 500 megawatt has already been commissioned. FGD system for 31.87 gigawatt have already been awarded and award for 32.98 gigawatts are under various stages of tendering.For compliance with NOx control in coal-fired plants, units will require installation of appropriate de-NOx system based on the emission level. During the year, NTPC had awarded contract for supply and installation of low NOx combustion system for [ 15 gigawatts ] of thermal capacity. The project involves modification of in-combustion system of the boiler to reduce the generation of thermal NOx during the combustion process. Further, 8 selective catalytic reduction and 2 selective noncatalytic reduction pilot test plants are also being undertaken in order to assess performance on high ash Indian coal and are likely to be completed by June 2019. Further, as part of its commitment to the environment, the company has taken an initiative to utilize agro residue for power generation. The utilization of agro residue-based biofuels for power generation will not only reduce carbon footprint of coal-based plants. NTPC Dadri has become first plant in the country to commercialize the biomass co-firing and up to 10% of agro residue-based biofuel co-firing with coal has been successfully operationalized. Cumulatively, we have co-fired 240 tonnes of agro residue-based biofuel until May 19. NTPC has invited expression of interest for production and supply of paddy straw and agro residue-based pellets, torrefied pellets to power plants located across country and received over 100 responses from vendors who are interested to supply biomass-based pellets for co-firing. It is expected that after formalization of contracts with vendors, 120 tonnes of paddy straw and agro residue will be co-fired daily by NTPC. Coming to the financial highlights. Gross sales for the year is INR 89,765 crores as against previous year gross sales of INR 81,529 crores, registering an increase of 10.1%. Sale of energy through generating has increased from INR 1,440 crores in FY '18 to INR 2,895 crores in FY '19. The profit on account of this has increased from INR 126 crores to INR 181 crores in FY '19. Total income for FY '19 is INR 92,180 crores as against previous year's total income of INR 85,208 crores, registering an increase of 8.2%. For the year, there is an increase of 2.7% in the PBT. That is from INR 12,339 crores in the previous year to INR 12,673 crores. PBT for the quarter 4 is INR 3,537 crores as against INR 3,389 crores in the corresponding quarter of previous year, registering an increase of 4.4%. For FY '19, there is an increase of 13.6% in the PAT from INR 10,343 crores to INR 11,750 crores. PAT for Q4 FY '19 is INR 4,350 crores as against INR 2,926 crores in the corresponding quarter of previous year, registering an increase of 48.7%.The under recovery on account of fixed charges has reduced from INR 1,445 crores in FY '18 to INR 799 crores in FY '19. This was INR 1,100 crores as at 31st December '18. Thus there is an improvement of INR 302 crores in the quarter 4 as compared to disincentive of INR 406 crores in quarter4 previous year leading to overall increase by INR 708 crores in the current quarter. The company was recognizing deferred asset for deferred tax liability as part of deferred tax liabilities. During the year in line with the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India, the same has been reclassified as a regulatory deferral account balance. The company has also recognized MAT credit entitlement of INR 8,257 crores until financial year '18/'19 and correspondingly, an amount of INR 7,615 crores has been recognized as payable to beneficiaries through regulatory deferral account balances. During the year, late payments, such as accrued, increased by INR 792 crores and interest on short-term borrowings has increased by INR 550 crores on the base of payments from the customers. For FY '19, the Board has recommended final dividend at the rate of 25% of paid-up capital that is INR 2.50 per share subject to the approval of the shareholders. As you are aware, interim dividend for the year was declared at 35.8% of paid-up capital that is INR 3.58 per share and this was paid in February '19. So in all INR 6.08 per share is the dividend for the year '18/'19.An update on various other financial activities. The regulated equity as of 31st March was INR 53,989 crores. As of March 2018, it was INR 50,921 crores. The total assets of the company stood at INR 2,90,878 crores as at 31st March '19 as compared to INR 2,67,832 crores as at 31st March '18. The gross block has increased by INR 13,569 crores to INR 1,52,976 crores as at 31st March '19, mainly on account of capitalization of new units. Capital working progress, including advances, stood at INR 95,803 crores on stand-alone basis as at 31st March '19 as compared to INR 83,308 crores as at 31st March '18. At the group level, CWIP stood at [ INR 1,06,379 ] crores at March 31, 2019, compared to INR 82,916 crores as at 31st March 2018. Fund mobilization. Average cost of borrowing for the year was 6.92% as compared to 6.99% in FY '18. The decrease is on account of lower rate of interest on new borrowings. NTPC has priced an issue of 3.75% USD-denominated 450 million 5-year notes in March '19. This is the 10th offering under our MTN program set up in 2006. During '18/'19, we have also signed term loans for about -- for INR 16,000 crores with various commercial banks, and we have issued bonds with door-to-door maturity of 3 years aggregating to INR 3,056 crores at a coupon of 7.93%.In FY '19, we incurred CapEx of INR 27,363 crores against INR 24,134 crores in FY '18. The CapEx by other group companies during FY '19 was INR 6,092 crores. Thus, the total group CapEx for the year was INR 33,455 crores. The capital outlay for FY '20 has been estimated at INR 20,000 crores for the company. NTPC has achieved more than 100% realization in FY '19. This is 16th consecutive financial year of achieving 100% realization. Total amount realized during the year was INR 91,714 crores. The trade receivables are maintained at a level of 34 days sales as at 31st March.Regarding fuel supply position for the company. During FY '19, materialization of coal against ACQ was 95.12% as against 95.24% in FY '18. Coal supply during FY '19 was 176 MMT. This comprises 175 MMT of domestic coal and 1 million tonnes of imported coal. The coal supply during previous year was [ 158.5 ] MMT, of which [ 158.2 ] was domestic and 0.3 million metric tonnes was imported coal. Coal consumption during FY '19 was 173 million metric tonnes, comprising 172 million metric tonnes of domestic coal and 1 million metric tonnes of imported coal. During the previous year, the coal consumption was 169.8 million metric tonnes, of which 169.5 million metric tonnes was domestic coal and 0.3 million metric tonnes was imported coal. Gas consumption during the year was 4.65 MMSCMD as against 5.33 MMSCMD in FY '18. The gas consumption of FY '19 was procured under APM plus PMT mechanism 2.95 MMSCMD; under non-APM, 0.71 MMSCMD; and under long-term RLNG 0.13 MMSCMD. From spot RLNG we sourced 0.86 MMSCMD. A brief overview of the group company. NVVN, our trading subsidiary, transacted 17.4 billion units during FY '19 as against 17.3 billion units during FY '18, registering an increase of 0.9%. Units transacted during FY '19 include 5.4 billion units of solar bundled power, 3.4 billion units traded through bilateral arrangements, 5.5 billion units under cross-border trading and 3.1 billion units through power exchange. NVVN has signed agreement with Nepal Electricity Authority for supply of up to 350 megawatts of power from July '19 to July '20. Presently, 240-megawatt power is being supplied by NVVN to NEA. During the year, we have accounted dividend income of INR 124.19 crores from our subsidiaries and joint venture companies, comprising INR 71 crores from Aravali Power Company, INR 20 crores each from NVVN and NTPC-SAIL Power Company, INR 4 crores from Energy Efficiency Services, INR 4.8 crores from PTC Limited and INR 3.5 crores from Utility Powertech Limited. NTPC continues to win laurels and awards in various fields. Major awards received in the quarter 4 of FY '19 are: World Class PSE Excellence in Asia for its leadership and most efficient power usage in the country, awarded certificate of appreciation for the timely completion of rural electrification works in the state of Orissa under Saubhagya. Conferred with the Apex India CSR Excellence awards 2018 in platinum category for outstanding achievement in CSR. Ranked among India's 25 best workplaces in manufacturing 2019 in a study carried out by Great Places to Work and Economic Times. Awarded for technology adaptation and best performer financial at 6th PSU Awards by Governance Now. These were some of the highlights I wanted to share before the question-and-answer session. Now the field is open for Q&A. Thank you.

[Harshavardhan S. Dole, Vice President]

Operator, please open the line for Q&A.

[Operator]

[Operator Instructions] The first question is from the line of Subhadip Mitra from JM Financial.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

If you could please help me with the adjusted profit number for the quarter and the full year for the current year as well as the last year?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

I think we will give you the adjusted PAT for the full year, okay? The reported profit for the year is INR 11,749 crores, okay? Now this -- if we remove the one-off item, it will be INR 10,616 crores, okay?

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

INR 10,616 crores?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Yes.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

Okay. And the corresponding number for FY '18?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Last year, the reported number was INR 10,343 crores. And if we remove the one-offs in that year, the number is INR 9,327 crores, which shows a growth of 13.82%.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

Okay. Would it be possible to also share the similar numbers for the fourth quarter?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Those we will share separately because, I think, there -- most of the adjustments have been in this quarter. So we'll say them separately.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

Understood. Sir, just wanted to check that the adjusted profit numbers that you just mentioned, are they also taking into account the surcharge income as an extraordinary element?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

No. It is not an extraordinary element. It is not one-off. It is a normal item.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

Right. But that has caused a bump up, I believe, in this particular quarter. And what would be that number that we would be looking at, the surcharge income that you registered?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

So we -- as I mentioned, for the year, the surcharge has increased by INR 792 crores. But you must also appreciate that the interest on short-term borrowings has also gone up by INR 550 crores and this is a routine continuous process depending upon the pace of payments by the DISCOMs. So it can't be an exceptional number. We have not adjusted for this.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

I understand. So I completely understand that this is anyway an operational income because we are getting this income only because we are incurring the expense because there is delay on the SEB side in terms of [ agreement ]. So I just wanted to understand how it was getting in the calculations. Secondly, just wanted to check that for the upcoming year, if you can also share, which are the capacities which are expected to commission in FY '20? And also, what are your plans on fueling this upcoming capacity in terms of imports and your own domestic caps of coal mine production?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Yes. My colleague, Mr. Roy, Director of Projects, will answer this question.

[Susanta Kumar Roy, Director of Projects & Executive Director]

Good afternoon. In the financial year '19/'20, we have planned for capacity addition around 5,000 megawatts.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

Okay. If you could share the plant-wise details, please?

[Susanta Kumar Roy, Director of Projects & Executive Director]

That I am telling capacity addition means that COD, that -- one is that finally one is Meja that we have done -- already done at NTPC Group, I'm talking NTPC Group, Meja already Unit 1 done 650 mega, we have done commercial operation. Then from 1st June Gadarwara Unit 1 800 megawatt, we are going for commercial operation. Then Lara Unit 1, 800 megawatt; then NPGCL Unit 1, 660 megawatt; then Khargone Unit 1, 660 megawatt; Tanda Unit 1, 660 megawatt; then Barauni 1 250 megawatt at Unit 8; and Darlipali Unit 1, 800 megawatt. So it is around 5,000 megawatt.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

All right. And...

[Operator]

Subhadip Mitra, I'm sorry to interrupt, but may we request to return to the question queue for...

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

I understand. It is just a continuation of the same question and it's not completed yet. So I just wanted to inquire that, are we looking at most of these capacities to come in by the end of the year? Or would they be spread out?

[Susanta Kumar Roy, Director of Projects & Executive Director]

It will be spread out.

[Subhadip Mitra, Power Analyst of Institutional Equities Research]

Okay. And lastly, the earlier question I'd asked on the coal supply, if you can please help me with the same.

[Prakash Tiwari, Director of Operations & Executive Director]

Good afternoon. This is Prakash Tiwari, Director, Operations. About coal supplies for our upcoming new plants, new units, which are going to be operational this financial year, we have tied up adequately. To mention a few: 3 million metric tonnes coal -- imported coal yet to be supplied, for which order is already in place. Then our own mines at Pakri and Dulanga, they're likely to ramp up supplies by another 5 million tonnes -- roughly 5 million tonnes from these 2 mines of ours. And in addition to this, we are continuously following up with Coal India to enhance our ACQ. And this is in the advanced stage of being [ fortified ]. So I am sure that we are not going to face any problem as far as supplies of coal is concerned.

[Operator]

[Operator Instructions] We take the next question from the line of Abhishek Puri from Axis Capital.

[Abhishek Puri]

I want to congratulate on good set of results. I have 2 queries. One, if you can detail out this one-offs which you mentioned specifically, wanted to know on depreciation why it has reduced and as well as other income has shot up meaningfully. So that would be surcharge income, I'm assuming, in the fourth quarter, but if you can give out the details, that will be one. And secondly, in terms of FGD, you have already installed one of them. So how has been the deterioration on the OpEx side, on the operational maintenance cost side? And what is the cost recovery mechanism CRC is willing to give now?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

I think the FGD question will be answered by our Director, Technical, Mr. Mohapatra. After that, I'll answer you about the reduction and depreciation in Q4, okay?

[Prasant Kumar Mohapatra, Director of Technical & Executive Director]

As far as FGD is concerned, already, we have awarded around 30,000 megawatt of units. And in our Vindhyachal Unit #13, our first FGD has been commissioned and it is working satisfactorily as per the requirement. That is 90% reduction of the [ plant ] value. As far as OpEx is concerned, still, I think, we have to calculate all the figures, but since this will be covered under the -- but environment law changes, so it will be taken care of.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Okay?

[Abhishek Puri]

Would there be any under recovery in the current quarter when it starts operation?

[Prakash Tiwari, Director of Operations & Executive Director]

No. No. Again, Prakash Tiwari, Director, Operations. As we could reduce under recovery in the last fiscal, FGD...

[Anand Kumar Gupta, Director of Commercial & Director]

Okay. Good afternoon, everybody. I'm Director, Commercial, A.K. Gupta. As far as investment of FGD is concerned, this is certainly issue that this will be basically added into the tariff by adding the capital cost of this FGD investments. And also in terms of operation and maintenance, the relevant provisions will be there to take care of those expenses. So I think, for FGD, adequately it will cover by CRC.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Yes. And regarding depreciation, the last quarter, actually we received the order of the APTEL and the Supreme Court regarding this commercial date -- operation date for Barh. And therefore, we had to do accounting adjustment in the fourth quarter. We reversed sales of INR 2,962 crores and also reversed the expenses -- operational expenses, which were booked in the previous year. And the depreciation reduction you are seeing in Q4 is mainly on account of depreciation reversed for the Barh unit about INR 470 crores. The rest of the amounts are due to increases, due to new capacities and also reduction in the older units. And after the 12th year, the depreciation rate comes down from 5.28% to about 1.5%.

[Operator]

We move to the next question. The next question is from the line of Apoorva Bahadur from Jefferies.

[Apoorva Bahadur, Equity Associate]

Sir, wanted to know same impacts, I think -- I believe is in finance cost as well, so could you please give the details for the entire breakup?

[Susanta Kumar Roy, Director of Projects & Executive Director]

Line items? Yes, we will just give you, okay. So just I'll read it out a little later. But then we can -- if you have the next question, you ask.

[Apoorva Bahadur, Equity Associate]

Sir, also I wanted to know if this year as well we have entered into some sort of agreement with the railways regarding the advanced, like the one we paid last year. And to what amount will that be?

[Susanta Kumar Roy, Director of Projects & Executive Director]

Yes. We have paid INR 6,000 crores. We have paid as of 31st March INR 6,000 crores. Okay?

[Apoorva Bahadur, Equity Associate]

Okay.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Now I'll tell you about this Barh adjustment line-by-line, okay? The revenue from operations decreased by INR 2,946 crores; fuel cost decreased by INR 1,706 crores; finance cost by INR 479 crores; depreciation by INR 447 crores; other expenses by INR 97 crores; and provisions were written back to the extent of INR 277 crores. Overall, this adjustment has resulted in an increase in profit by about INR 59 crores. So when you compare quarter-on-quarter line items, you have to make this adjustment to make it more meaningful.

[Operator]

The next question is from the line of Sumit Kishore from JPMorgan.

[Sumit Kishore, Research Analyst]

My first question is related to the reduction in capacity charge under recovery to INR 800 crores as guided by the company, what is the broad breakup of capacity charge under recovery for the full year, FY '19? And what is your target now for FY '20?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

It should be 0. But basically, it's arising on account of Unchahar. That is -- the unit was restored, I think, in the third quarter. So we lost about INR 400 crores at Unchahar. At Badarpur, we lost about INR 67 crores. And then there was at Kudgi and Mauda, there was about INR 270 crores of disincentive. So with better coal availability and this Unchahar and the Badarpur issues behind us, hopefully, there should be minimal disincentive in the fiscal '19/'20.

[Operator]

The next question is from the line of Mohit Kumar from IDFC Securities.

[Mohit Kumar, Analyst]

Sir, what is the impact of deferred tax accounting in the full year numbers?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

It is plus INR 1,754 crores. Deferred tax, the total thing, right? After PBT line, the impact is INR 1,754 crores.

[Operator]

The next question is from Rahul Modi from ICICI Securities.

[Rahul Modi, Analyst]

Sir, quickly on 2 questions, which I had. Sir, the consolidated profit has increased around if I adjust the same amount for stand-alone, we are getting close to around INR 1,000 crores. So can you please throw some light on what is the improvement, which are the plants that we are seeing an improvement in? And secondly, the PLF-based incentives for the quarter and the year, if you could help us with.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

The profitability last year there -- Vallur was in a loss, NPGCL, this year, it has improved. So it is back in black. So that is the major improvement. And then Aravali has shown increasing profit. Rest of the units are more or less the same.

[Operator]

The next question is from the line of Dhruv Muchhal from Motilal Oswal Securities.

[Dhruv Muchhal, Research Analyst]

Sir, a few questions. Just to understand the quarterly profit, the Q4 number, we have a reported number of INR 4,300 crores. There seems to become some one-offs here. So if you can probably -- one point, was the MAT credit, the note #10 in your notes to accounts. Is it -- is that impacting positively to our numbers? Or nothing on that side?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Yes. It is primarily on account of this MAT credit and the deferred tax adjustments. This has been done in the current quarter onwards.

[Operator]

The next question is from Pulkit Patni from Goldman Sachs.

[Pulkit Patni, Equity Analyst]

Sir, most of my questions are answered. Just one, could you give an update on what's happening with the Rajasthan plant right now, given that now elections are over?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Rajasthan...

[Anand Kumar Gupta, Director of Commercial & Director]

I think this is regarding the Chhabra?

[Pulkit Patni, Equity Analyst]

Yes. Yes.

[Anand Kumar Gupta, Director of Commercial & Director]

Okay. The impact -- our MoU with the Rajasthan government is still live. And we are continuing our discussion with them. And hopefully, we'll have something this year to, again, talk to them. And I would not like to be able to tell you more than this. And further on, let's see what happens.

[Operator]

The next question is from Girish Achhipalia from Morgan Stanley.

[Girish Achhipalia, Vice President]

Sir, can you help us with the PLF-linked incentives for the year and for the quarter?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

PLF-linked incentives. PLF-linked incentives and increment. We are giving you that number. Next question, if you have any other questions.

[Girish Achhipalia, Vice President]

No, sir. That's it.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Incentive for the full year is INR 352 crores, okay? Last year, it was INR 327 crores.

[Operator]

We move to the next question. The next question is from the line of Abhishek Puri from Axis Capital.

[Abhishek Puri]

So just wanted to check on the new mechanisms that have been set up by the regulatory commission on the quarter PAF now. So how is that progressing ahead? And are there any under recoveries that we are seeing on that regard? And a related question on the financials because you recover majority of your under recoveries in Q4. And your Q4 profit is way higher than Q1, Q2, Q3. So how would that pan out in FY '20 now?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

As far as quarterly availability factor PAF regulation is concerned, this will be next from [ 1/4/20 ] onwards. This is not applicable for '19/ '20 fiscal year.

[Operator]

The next question is from Apoorva Bahadur from Jefferies.

[Apoorva Bahadur, Equity Associate]

Sir, 2 questions. Firstly on the NVVN trading side. So we were giving working capital support for some JNNSM projects. So how much capital is stuck over there, I mean, our support on that end? And secondly, are we seeing fresh demand from states for capacity given the sharp increase in peak demands?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Let me answer you the second question first. There has been a tendency now for the states to really ask for more power. And we whatever surrender power we had by the different states, now there are many states coming up to take that power. So the situation is now reversing. And people are -- all the states are looking for more power allocation from NTPC plants. As far as the first is concern on NVVN, let us check the data and we will revert back to you.

[Operator]

The next question is from the line of Swarnim Maheshwari from Edelweiss Securities.

[Swarnim Maheshwari, Research Analyst]

Sir, what is the status on the overdue situation with respect to UP, AP, Telangana and J&K? I believe there was almost about INR 6,000 crores of overdue from these 4 states?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Just a minute, I will give you numbers. See, if you look at this year, as far as the last year is concerned, it was more or less squared off. As far as this year is concerned, until now -- as far as UP is concerned, it's [ allowing ] INR 1,193 crores, which is more than 60 days. And major defaulter again remains Telangana, Andhra Pradesh, Karnataka and Tamil Nadu also J&K.

[Swarnim Maheshwari, Research Analyst]

So what is the overall overdue position, sir, at this point in time?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

As of date, more than 60 days, it's INR 7,600 crores.

[Operator]

The next question is from the line of Sumit Kishore from JPMorgan.

[Sumit Kishore, Research Analyst]

Sir, a few data points. What is the addition to the regulated equity base post the commercialization of the Pakri Bawardih coal mine? And also, if could you tell us the absolute figures for late payments surcharge-related income in FY '19 versus the FY '18.

[Kandikuppa Sreekant, Director of Finance & Executive Director]

Late payment surcharge income in FY '19 was INR 1,299 crores versus about INR 570 crores last year, okay? Pakri Bawardih, I think we have incurred so far about INR 3,300 crores. So what is the equity component of it? About 30% should be the equity component there.

[Operator]

The next question is from the line of Rahul Modi from ICICI Securities.

[Rahul Modi, Analyst]

Sir, just one question on the Talcher and Mauda plants. Sir, even Talcher was below the normative PAF, is there issues over there with regard to coal availability and other law and order issues, are they in place now? Or how is it -- how it's panning out?

[Prakash Tiwari, Director of Operations & Executive Director]

Prakash Tiwari here. About Talcher, there was under recovery because of very poor quality of coal available in the mines nearby Mahanadi Coalfields Limited. So we have tried to tied over the situation by supplying good quality coal from Eastern Coalfields Limited. And also, the good quality imported coal from East Coast ports. So this is about Talcher Super. Hopefully, with this measure this year, there will be not any fixed costs under recovery. And about Mauda, the fixed cost under recovery was on account of coal and as well as on account of stabilization of the plant. So having enough stock at Mauda this year is in excess of 4 lakh metric tonnes and regular supplies, this problem is not likely to recur. And as far as the plant nonavailability is concerned, the plant is now fully stabilized with the initial hiccups after first commissioning, the issues have been resolved. So both these plants will not have fixed costs under recovery this year. Mauda as well as Talcher Super.

[Operator]

We'll take that as the last question. I would now like to hand the conference back to Mr. Harshavardhan Dole for closing comments.

[Harshavardhan S. Dole, Vice President]

I'd firstly like to thank the management for giving us an opportunity to host the call. And I'd also like to sincerely thank all the participants for logging on to the call. Sir, any last comments that you would want to make?

[Kandikuppa Sreekant, Director of Finance & Executive Director]

No. Thank you. Thank you for taking time out on a Saturday. We much appreciate it.

[Harshavardhan S. Dole, Vice President]

Thank you, sir. Thanks a lot.

[Operator]

Thank you very much. On behalf of IFFL Securities, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.