NTPC Q3FY22 Preview: Revenue seen at Rs. 271,604 million, PAT at Rs. 34,205 million

28 Jan 2022 , 10:08 AM

Result date: 29^th January, 2022
Recommendation: Buy
Target price: Rs. 165

(Source: IIFL Research)

NTPC is could post 4.5% YoY growth in generation, driven by its coal-based stations and increasing power demand. This, coupled with improvement in realization could drive a 11.4% YoY rise in revenues to Rs 271,604 million. The company could add 1,307 MW of capacity (coal — 1,160 MW and solar — 147 MW) during the quarter.

NTPC though could post moderate improvement in PAT. This is because improvement in power generation and healthy pace of commercialization of new capacities would be offset by lower surcharge income. Consequently, its PAT could move up by 3.4% on a YoY basis to Rs 34,205 million.

Important management insights to watch out for:

• Outlook on demand trends
• Margin drivers

Rs. Million	December 2021 estimates
Revenue	271,604
YoY change	11.4%
EBITDA	74,361
PAT	34,205
YoY change	3.4%

Source: Brokerage reports