The state-owned company’s consolidated net profit for the quarter ended March 31 was 48.61 billion rupees ($594.40 million), up from 51.67 billion rupees a year earlier.

NTPC also declared a dividend of Rs 3 per share held.

Total spending jumped more than 22% to 390.19 billion rupees, mainly due to fuel costs which jumped nearly 28% to 247.14 billion rupees.

Rising costs outpaced operating income, which rose by around 19% to Rs 442.53 billion, a sign of increasing demand for electricity ahead of the summer season.

India’s power generation grew at its fastest pace in more than three decades in the year to March 31, according to an analysis of government data by Reuters. This increase was due to increased production of coal-fired power plants and renewable energy.

In March, the government asked power companies to ensure sufficient supply during the summer, when demand is high. He also advised the company to carry out maintenance on the coal-fired power plant first and keep it running at full capacity to avoid any disruptions during the peak months of April and May summer.

NTPC Group’s installed capacity increased by 3,292 MW year-on-year to 72,254 MW, while its commercial capacity also increased by 3,952 MW to 72,254 MW.

The company said that gross power generation increased by 6.33 billion units (BU) to 89.67 BU, while total coal supply increased to 57.82 MMT from 54.44 MMT the previous year.

Earlier this month, rival Tata Power Ltd posted a 55% increase in fourth-quarter profit, thanks to power generation upgrades that boosted its transmission and distribution segment.

($1 = 81.7800 Indian rupees)