NTPC Q3 preview: Standalone PAT expected to increase 9% on year; margins to remain steady

NTPC, the state-run utilities major, is scheduled to come up with its December quarter earnings on January 29, 2024 (Monday). Zee Business research team estimates the company’s standalone Q3 PAT to increase 9 per cent year-on-year (YoY) to Rs 4,895 crore versus Rs 4,476 crore logged in the corresponding period a year ago.

Revenue at the power company is also seen inching higher by 8.2 per cent to Rs 44,810 crore as against Rs 41,410 crore in the same quarter of the previous fiscal. The research team held that the company’s earnings would be underpinned by good energy production. In November, the demand for power grew 8.7 per cent to 204.6 GW.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) will also increase 8 per cent on-year to Rs 12,450 crore in the December quarter, as against Rs 11,505 crore recorded in the year-ago period. Margins, however, are estimated to remain steady YoY at 27.8 per cent.

Furthermore, the research team is of the view that the new renewable commissioning will improve the earnings of the utility company. Furthermore, the company plans to increase coal production from its own mines.

The company has set a target to produce 34 MT of coal from its own mines in the ongoing fiscal year, up from 23 MT in FY23. With this step, the company will be able to cut down on its power production costs. Additionally, the company is looking forward to commissioning more new capacities in FY25.

Alongside the results, NTPC will also declare the second interim dividend for FY24. The record date for this is set for February 6, 2024.

At the time of writing this copy at around 13:36, shares of NTPC traded higher by around 2 per cent at Rs 314.95 per share.