NHPC Q1 Review - In-Line As Higher Other Income Offsets Lower Generation: Motilal Oswal
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Motilal Oswal Report
NHPC Ltd.'s Q1 result highlights the impact of lower generation, offset by higher other income and revenue from the Teesta low dam project stage-IV order.
Standalone reported profit after tax was up 26% YoY to Rs 9.1 billion (in line with our estimate of Rs 9.6 billion).
NHPC's Q1 FY21 had a one-time rebate impact of Rs 1.85 billion. Adjusted for this, profit after tax would be largely flat on a YoY basis.
The capex run-rate is expected to increase on account of investments in new projects.
However, much of the commissioning remains three to four years away, implying free cash flow/return on equity getting dragged over the near term.
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