(Bloomberg) -- India’s largest power producer NTPC Ltd.’s fourth-quarter profit dropped on account of a jump in tax expenses, even as electricity sales rose.

State-run NTPC’s net income declined almost 2% to 55.6 billion rupees ($669 million) for the three months ended March, according to a Friday statement. Profit nearly matched the average of estimates compiled by Bloomberg. 

The company reported higher revenues on year, which were boosted by an increase in sales. Demand for electricity in India is growing at the fastest rate of any major economy and has been fueled in recent months by higher industrial output and a prolonged heatwave. A new record was set Thursday for peak consumption in May, as citizens crank up fans and air-conditioners.

NTPC shares have more than doubled over the past 12 months, outpacing gains in the 13-member BSE India Power Index. The utility also added 2.7 gigawatts of new generation capacity in the year ended in March, lifting electricity sales.

The company paid 37% more in taxes, while non-operating income saw a mild drop. The increase in tax and employee expenses weighed on a 8.3 billion rupee writeback of impaired investment in one of the company’s gas power units.

Read more: Coal Keeps Powering India as Booming Economy Crushes Green Hopes

The company will lead India’s push to add more coal-fired power capacity to meet rising electricity demand, with plans to begin construction of almost 17 gigawatts of projects over the next three years. A decision to add new coal plants has been sharply criticized, as other nations set target to phase out use of the fossil fuel.  

NTPC also said its board has approved forming a fully owned subsidiary for executing nuclear power projects. The company has previously talked about its nuclear power ambitions. 

NTPC is also aiming to add new solar and wind capacity, and is working on green hydrogen and energy storage projects. 

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