NTPC Ltd's Q4FY18 standalone net profit declines 1.7% yoy to Rs2,626cr : Misses Estimates

The company’s standalone revenue stood at Rs23,100cr, up 13.1% yoy and 11.2% qoq

May 28, 2018 09:05 IST India Infoline Research Team

NTPC Ltd Q4FY18

Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 23,100 13.1
EBITDA 5,911 8.2
EBITDA Margin (%) 25.6 [117]
Net Profit (adjusted) 2,626 [1.7]
***EBITDA margin change is bps
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Buy

Reco. Price

170.8

Last updated on

08-May-2018


NTPC missed earnings estimates for Q4FY18 despite the strong top-line growth. Revenue grew by 13.1% yoy to Rs23,100cr (expectation Rs21,548cr). EBITDA stood at Rs5,911cr, up 8.2% yoy against estimates of Rs6,108cr. EBIDTA margin fell by 117bps yoy to 25.6%. Net Profit stood at Rs2,626cr against an estimate of Rs2,783cr.
  • Installed power generation capacity in Q4FY18 stood at 53,651MW (NTPC group level), an addition of 3,153MW, an increase of 5.9% yoy.
  • Commercial generation in Q4FY18 increased to 68,529mn units, an increase of 7.7% yoy. Commercial generation for FY18 stood at 265,003mn units, an increase of 5.96% yoy.
  • PLF for the coal plants of NTPC group stood at 79% in Q4FY18 and 77.9% for FY18. This represented a decrease of 218bps and 69bps for Q4FY18 and FY18 respectively.
  • Average tariff for FY18 stood at Rs3.23 per unit
Conference Call Highlights
  • Under recoveries for Q4FY18 stood at ~Rs254cr, which brings the total under recovery for FY18 to Rs1,440cr. The total under recovery due to shortage of coal stood at ~Rs800cr for FY18. The management stated that they are confident that the coal supply situation would improve in the country during FY19.
  • The capacity addition for FY19 is likely to be ~5,010MW, ~4,500MW for thermal capacity and ~510MW for renewable energy. The management stated that the capacity addition for FY20 would also be ~5,000MW.
  • Capex for FY18 stood for stood at ~Rs31,036cr. The management stated a capex target of ~Rs22,300 for FY19.

Technical View:

NTPC Ltd is currently trading at Rs. 167.75, up by 2.65 points or 1.61% from its previous closing of Rs. 165.10 on the BSE.
The scrip opened at Rs. 166 and has touched a high and low of Rs. 169.60 and Rs. 165.60 respectively. So far 91,24,585 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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