• Lower sales for the quarter was due to non recognition of revenue towards annual fixed charges to the tune of Rs 88.19 crore and Rs 48.90 crore in respect of TLDP III and TLDP IV for the quarter on account of shut down of these power plants due to agitation by Gorkha Land Supporters for almost two months from July 12, 2017. Moreover in Q2FY18 the company reversed unbilled revenue of Rs 276.22 crore recognized till June 30, 2017 on account of change in estimates in relation to 4^th unit of Parbati power project based on the deliberations and subsequent developments in the course of hearing in CERC during the quarter on the tariff proposal of all 4 units of Parbati III power station.
• Sharp contraction in operating profit margin to the tune of 840 bps was largely due to rise in all cost heads. The staff cost was down by 450 bps to 18.3%. The other expense was down by 390 bps to 25.2%.

• Other income was down by 41% to Rs 519.38 crore. The interest cost was down by 16% to Rs 235.62 crore and the depreciation was up by 2% to Rs 350.48 crore. Thus the PBT before EO was down by 42% to Rs 1048.23 crore.

Half yearly performance

Sales was down by 7% to Rs 4299.20 crore and the operating profit was down by 14% to Rs 2501.27 crore as the OPM declined to 58.2% from 63.4% in corresponding previous period. After accounting for lower other income, lower interest and higher depreciation the PBT before EO was down by 29% to Rs 1945.28 crore. The taxation was down by 27% to Rs 407.53 crore and thus PAT was down by 29% to Rs 1537.75 crore. Regulatory income was up by 39% to Rs 343.55 crore and thus gained the PAT was down by 22% to Rs 1881.30 crore. The other comprehensive income was up by 37% to Rs 28.49 crore and thus the fall at total comprehensive income was restricted at 22% to Rs 1909.79 crore.