NHPC shares plummet 5% after co reports net profit fall in Q2FY25

Shares of state owned hydropower company NHPC tanked 4.95 per cent at Rs 80.34 a piece on the BSE after the company reported a decline in net profits in second quarter earnings for the financial year 2024-25 (Q2FY25). 

State-owned NHPC reported a 37 per cent decline in its consolidated net profit for the September quarter, which stood at Rs 1,069.28 crore, compared to Rs 1,693.26 crore in the same period last year. The drop in profit was primarily due to exceptional expenses incurred during the quarter. 

The company’s total income, however, saw a growth, rising to Rs 3,402.09 crore from Rs 3,113.82 crore, marking a 9.25 per cent increase year-on-year. On the other hand, expenses rose to Rs 1,831.08 crore from Rs 1,573.54 crore in the corresponding period of the previous fiscal, reflecting an increase of 16.37 per cent. 

Additionally, NHPC reported making payments under the government’s "Vivad se Vishwas II" scheme during the quarter and the first half of FY25. The company settled contractor claims amounting to Rs 203.12 crore for the quarter, and Rs 350.03 crore for the half-year ended September 30, 2024. 

NHPC, a Mini-Ratna Category-I enterprise of the Government of India, is one of the largest organisations in the country focused on hydro power development.  

The company specialises in the planning, development, and implementation of a comprehensive and efficient network of hydroelectric projects across India. NHPC oversees all stages of project development, from initial concept through to the commissioning of the hydroelectric plants.

NHPC  share price history

The company’s stock has outperformed the market year to date as it has risen 24.5 per cent, while gaining 60.8 per cent in the last one year. In comparison BSE Sensex has risen 10.1 per cent year to date and 22.5 per cent in a year. 

 

The company has a total market capitalisation of Rs 82,409.47crore. NHPC’s shares are trading at a price to earnings multiple of 22.86 times and at an earning per share of Rs 3.70. 

 

At 9:51 AM; the stock of the company dipped 2.48 per cent at Rs 82.43 a piece. By comparison, the BSE Sensex jumped 0.14 per cent at 79,654.27.