NTPC net rises 7%, sales down marginally

State-run power generator NTPC reported single-digit growth in earnings and a mraginal decline in revenues during the quarter ended December, extending its two-year run of muted earnings’ growth. The company reported a seven per cent year-on-year increase in its consolidated net profit in the quarter to Rs 3,074 crore against Rs 2,861 crore last year. The net sales were down 0.2 per cent y-o-y to Rs 18,739 crore. The NTPC has reported negative profit growth in three quarters.

Current earnings were, however, ahead of market expecations and an improvement over the preceding quarter and the corresponding period a year ago. Brokerages were expecting a 27 per cent y-o-y decline in the net profit while net sales were expected flat, according to Bloomberg consensus estimates.

A better-than-expected bottom line was due to a 600-basis-point improvement in operating margins on a sequential basis to the level seen last year. Margins were helped by a decline in employee expenses and an increase in NTPC realisations on account of a new rate order from the Central Electricity Regulatory Commision. The company began advance billings at new rates pending a final order from the regulator.

THE FLOW OF ELECTRICITY

• Q3 profit: Rs 3,074 cr, highest ever
• 7% increase over a year ago
• Unaudited total income: Rs 19,339.4 cr
• Gross power output: 61.3 billion units
• Installed capacity: 43,143 Mw

NTPC net power generation during the quarter was up 3.4 per cent on year-on-year basis.  

The board of directors recommended interim dividend of Rs 75 paisa per equity share for FY15. The dividend will be paid on February 13, 2015. Earlier the company had paid interim dividend of Rs 1.75 per share in September 2014. The company also proposes to issue bonus debenture with a face value of Rs 12.50 against each equity share of Rs 10, under a Scheme of Arrangement, subject to requisite approvals under applicable laws.

NTPC currently has an installed capacity of 43,143 mw. Gross generation of the company for the Q3 grew to 61.310 billion units from 59.129 billion units for the corresponding quarter in previous year, up by around four per cent. For nine-month period of FY 2014-15, gross generation was 179.864 billion units as against 170.653 billion units in corresponding period of previous year, an increase of over 5%.