Q1 Results: NTPC Profit Misses Estimates On Higher Finance Costs

NTPC Ltd. reported lower-than-expected profit in the first quarter on higher finance costs.

Net profit was flat on a yearly basis at Rs 2,602.79 crore in the three months ended June, according to the state-run power producer’s exchange filing. That compares with the Rs 2,830.6-crore consensus estimate of analysts tracked by Bloomberg.

• Finance costs of India’s largest power generator jumped 28.3 percent on a yearly basis to Rs 1,565.26 crore.
• Revenue rose 6.6 percent on a yearly basis to Rs 24,192.59 crore in three-month period, meeting the estimate of Rs 23,503.8 crore.
• Earnings before interest, tax, depreciation and amortisation was up 8 percent from the year-ago period to Rs 6,452.38 crore against the estimated Rs 6,587 crore.
• The company’s margin expanded to 26.7 from 26.2 percent—analysts had forecast 28 percent.

NTPC accounts for nearly 15.5 percent of the country’s installed power generation capacity and 22 percent of the power generated, the according to a July note by Crisil. The company shall retain its dominant position as India’s largest power generator with annual capacity addition plans of 2-3 gigawatts, it said.

Earlier, the company said it will seek shareholders’ approval to raise Rs 15,000 crore through issuance of bonds or debentures and increase its borrowing limit to Rs 2 lakh crore in the annual general meeting scheduled on Aug. 21. The government, according to latest filings, owns 56.1 percent stake in the power company.

NTPC’s shares closed flat at Rs 123.90 apiece on Friday. The stock has declined 6.8 percent in the past 12 months compared to a 3.2 percent fall in the Nifty Index.