NHPC Ltd's Q3FY19 standalone net profit declines 73.5% yoy to Rs182cr : Misses Estimates

NHPC Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

***EBITDA margin change is bps
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NHPC reported results for Q3FY19 which missed estimates by a clear margin due to sharp increase in employee expenses. Revenue rose by 4.9% yoy to Rs1,571cr (expectation Rs1,761cr). EBITDA stood at Rs596cr, down 24% yoy against estimates of Rs1,069cr. EBIDTA margin fell by 1,442bps yoy to 37.9%. Net Profit stood at Rs182cr against an estimate of Rs680cr.

• An amount of Rs190.5cr was charged towards employee expenses owing to regularization of pay scales.
• Net profit was sharply lower due to adverse movement in regulatory account owing to rise in employee cost and change in depreciation charge for Kishanganga Power station.
• The Board of Directors have approved an interim dividend of Rs0.71 per share.

Technical View:

NHPC Ltd is currently trading at Rs. 23.70, down by 0.45 points or 1.86% from its previous closing of Rs. 24.15 on the BSE.
The scrip opened at Rs. 24.15 and has touched a high and low of Rs. 24.25 and Rs. 23.15 respectively. So far 98,39,796 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.