ICICI Securities: NTPC Posts Excellent Q1 Result In Challenging Environment, Sustainable Growth Ahead

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.NTPC Ltd.‘s standalone adjusted profit in Q1 FY21 was Rs 27.1 billion (down 7.8% YoY), but adjusting one-time rebate on fixed charges to distribution companies of Rs 8 billion (pre-tax), adjusted profit increased 14.8% YoY to Rs 33.7 billion.Being the first full quarter post the acquisition of Tehri Hydro Development Corporation Ltd (THDC) and North Eastern Electric Power Corporation Limited (NEEPCO), NTPC’s adjusted consolidated profit increased 21.3% to Rs 38.5 billion.The company’s core return on equity (RoE) remained strong at 19.5%, but fixed cost under recovery was at Rs 2.3 billion (Rs 1.2 billion in Q1 FY20).On Q1 FY21 consolidated profit basis, annualised earning per share comes to Rs 15.4, Q1 FY21-end RoE at 12.5% (pre-exception) and book value/share at Rs124.Thus, NTPC is on course to achieve the FY21E target earning per share of Rs 12.3/Rs 14.5 for standalone/consolidated entity (ex-rebate offered).Core earnings remain strong, which will be further strengthened by the robust commissioning pipeline and green initiatives..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: NTPC Posts Excellent Q1 Result In Challenging Environment, Sustainable Growth Ahead

NTPC is on course to achieve earnings-per-share estimate for FY21 on consolidated and standalone basis, ICICI Securities says.

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