NTPC shares scaled a 52-week high on Monday after the state-run power generation company reported a largely positive set of financial results for the April-June period. The stock of state-run power generation firm NTPC climbed by as much as Rs 8.9 or 4.2 per cent to Rs 218.9 apiece on BSE, surpassing a 52-week peak of Rs 210.4 touched on Friday.

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The scrip settled four per cent higher at Rs 218.5 apiece on the bourse.

NTPC Q1 results

On Saturday, the company reported a 9.4 per cent year-on-year increase in standalone net profit to Rs 4,066 crore for the first quarter of the current financial year.

Its revenue, however, declined 2.3 per cent to Rs 39,122.3 crore compared with the corresponding period a year ago, according to a regulatory filing. 

NTPC reported a 16.7 per cent increase in earnings before interest, taxes, depreciation and ammortisation (EBITDA) to Rs 11,369.4 crore. 

Its margin — a key measure of profitability — improved by 480 basis points on a year-on-year basis to 29.1 per cent, according to the filing.   

According to Zee Business research, NTPC's quarterly net profit was estimated at Rs 3,896 crore, revenue at Rs 40,814 crore, EBITDA at Rs 11,062 crore and margin at 27.10 per cent. 

EDITOR'S TAKE | Strong profit growth on lower fuel costs

Zee Business Managing Editor Anil Singhvi pointed out that the stock has already run up sharply to 52-week highs ahead of the earnings announcement. He also highlighted that lower fuel costs aided the company's profitability in the three-month period. 

NTPC's fuel costs decreased 11 per cent on a year-on-year basis to Rs 22,850.3 crore for the June quarter. 

He sees support in NTPC shares at Rs 200 and a higher level at Rs 217 apiece.

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