Q1FY23 Preview: NTPC: Revenue seen at Rs337,174 million, PAT at Rs42,882 million

28 Jul 2022 , 11:01 AM

Result date: 29^th July, 2022
Recommendation: Buy
Target price: Rs200
Source: IIFL Research

NTPC is likely to post ~30% growth in revenue over the year-ago quarter and 5.7% growth sequentially.

Presence of fuel supply agreement with Coal India for all its thermal units makes NTPC immune to surge in coal prices. Further, addition of recently commissioned capacities will also aid margins of the company in the June 2022 quarter. Overall, EBITDA could grow 23.1% over the year-ago quarter.

Increase in regulated equity base, higher other income and lower tax rate could drive 36.3% year-on-year growth in Profit After Tax (PAT).

Important management insights to watch out for:
·         Outlook on growth
·         Key margin levers

(Rs million)	June 2022 estimates	YoY change	QoQ change
Revenue	337,174	29.5%	5.7%
EBITDA	93,575	23.1%	(7.2)%
Profit After Tax	42,882	36.3%	(18.7)%

Source: Brokerage reports