NTPC - 3QFY17 Result Update - Improving Performance on Operational Metrics - Reliance Securities

NTPC has delivered an improved performance on key operational metrics in 3QFY17 with EBITDA and pre-tax profit rising by 9.3% YoY and 9.8% YoY, respectively. Net sales surged by 10.9% YoY owing to higher realisation and ~8% growth in regulated equity led by commissioning of new capacity. In line with our expectation, its reported PAT dipped by 7.5% YoY to Rs24.6bn due to higher effective rate (19.7% in 3QFY17 vs. 4.3% in 3QFY16). However, adjusted PAT grew by 8.5% YoY to Rs22.4bn in 3QFY17 vs. Rs20.6bn in 3QFY16. Despite decline in PLF led by lower system demand and fuel issues, we see further improvement in business dynamics owing to higher fuel availability and likely pick-up in demand owing to UDAY scheme. We reiterate our BUY recommendation on the stock with a Target Price of Rs178.

Shares of NTPC LTD. was last trading in BSE at Rs.170.4 as compared to the previous close of Rs. 168.35. The total number of shares traded during the day was 139576 in over 1902 trades.

The stock hit an intraday high of Rs. 171.7 and intraday low of 168.8. The net turnover during the day was Rs. 23738753.

Source : Equity Bulls

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