NTPC Q3 Preview: Revenue May Remain Flat This Quarter

The net profit of NTPC Ltd may increase 1.8% year on year to Rs 4,866.4 crore in the October–December period, according to Bloomberg consensus estimates.

Further, the analysts expect revenue from operations to remain flat this quarter at Rs 44,646.7 crore while margins may deteriorate to 28.5% this quarter compared to 32.5% in the same period of last fiscal.

• Revenue may rise 0.1% to Rs 44,646.7 crore.

• EBITDA may decline 12.3% to Rs 12,697.7 crore.

• Margin may fall to 28.4% vs 32.5%.

• Net profit may increase 1.8% to Rs 4,866.4 crore.

Elara Securities expect NTPC to benefit from regulated return, increased generation and capacity additions. In Q3FY24, the company’s generation in its plants at parent level rose 15% YoY to 84BUs. The company commissioned 50MW of Dayapar Wind Energy Project in Q3FY24.

Elara Securities added that power generation remained buoyant in Q3FY24, led by surging demand amidst festive season. Generation rose 13% YoY to 416BUs in Q3FY24, albeit on a high base of last fiscal (up 10% in FY23).

NTPC has an ambitious target of increasing its Renewable Energy (RE) capacity from 3.3 GW to 60 GW, as highlighted by a note from Axis Securities. Axis noted that polysilicon and module prices have come down as of Q3FY24 and are at multi-year lows. The record low module prices and attractive RE tariffs could help in RE capacity addition.

The board will also declare its second interim dividend for FY24, the record date for the same has been set on Feb 06, 2024.

Shares of NTPC closed 1.91% higher at Rs 314.75 per share as against the benchmark Nifty 50 closing 0.5% lower in Thursday’s trading session.