NTPC - Q3FY14 First Cut - Microsec

NTPC Ltd. came out with its Q3FY14 results on 28th January 2014.

The company posted better results than the overall consensus at all fronts. Revenue of the company was up by 19% YoY to INR 18,805 crore (12% up than consensus). Despite a percent increase in total expenditure as compared to increase in revenues, EBITDA increased by 16% YoY to INR 4656 crore with a margin of 24.75% which was down by 65bps compared to the same period an year ago. Fuel costs, employee benefit expenses & other expenses were the main components of higher expenses incurred by NTPC. PAT of the company grew by 10% YoY to INR 2861 crore with a margin of 15.2% which was again down by 120bps compared to same period previous fiscal. PAT margin for the quarter was contracted because of a marginal increase in other income of the company which was subdued by higher interest costs, depreciation charges & tax expenses for the quarter.

On a 9 Months scale; revenue rose by 5.3% to INR 50,882 crore followed by EBITDA which was up by 7.5% & a margin of 26% for the period. PAT, however, saw a decline of 4.3% at INR 7881 crore with a fall in margin by 156bps to 15.5% for the said period. Again, the same can be constituted to fall in other income, higher interest expenses, increased depreciation charges & tax expenses for the 9 months period.

The BoD of the company has recommended an interim dividend of Rs.4 per share of face value Rs.10 for the financial year 2013-14.

According to latest newsfeed, NTPC is hopeful of its 1320MW Katwa thermal power project in few months that is to be set up in West Bengal. Fuel linkage process & final lot of land acquisition process is in progress & the company is hopeful of starting the construction of the power plant in few months time.

Source : Equity Bulls

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