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NTPC Q2 Net Income Misses Estimates

State-owned power generator NTPC reported net income for Q2 below Bloomberg estimate, but revenue above expectations.

<div class="paragraphs"><p>NTPC Ltd.'s power plant. (Source: Company website)</p></div>
NTPC Ltd.'s power plant. (Source: Company website)

State-owned power generator NTPC Ltd. reported net income for the quarter-ended September that missed analysts' estimate, on Saturday.

Net income came in Rs 3,331 crore, up 5.53% YoY, but lagged the Bloomberg consensus estimate of Rs 3,597 crore. The company had reported net income of Rs 3,716.96 in the quarter-ended June. This implies a decline of 10.38% on a sequential basis.

Q2FY2022-23 Results Highlights (Standalone, YoY)

  • Revenue up 39.17% at Rs 41,015 crore Vs. Rs 29,471 crore (Bloomberg consensus estimate: Rs 36,416 crore)

  • EBITDA up 23.29% at Rs 9,521crore Vs. Rs 7,723 crore

  • EBITDA margin at 23.21% Vs. 26.21%

Generation, as a segment, contributed to bulk of the overall revenue, in-line with past trends.

In a separate exchange filing ahead of results, NTPC said its installed capacity grew 3.57% YoY to 70,245 MW in the quarter-ended September while gross energy generation rose 8.06% to 85.487 billion units. The company also produced 4.32 MMT of coal from captive mines, up 1.53% YoY from 2.79 MMT in Q2FY2022.

The company rose in each of the four sessions in the truncated week, ahead of earnings, adding 5.45%. Of the 27 analysts tracking the company, 25 maintain 'buy' and two suggest 'hold', according to Bloomberg data. The return potential of the stock is 9%.