NTPC - Q2FY21 First Cut - ICICI Securities

(CMP - Rs. 89; MCap - Rs. 88308 crore)

NTPC reported operationally decent set of Q2FY21 results amid challenging times. In the wake of gradual opening up of economic activity, the company posted better PLF data vis-à-vis industry average and hence reported in generation. The company has taken an exceptional hit in terms of one time rebate allowed to SEB's.

Q2FY21 Earnings Summary

- Reported revenues came in at Rs. 24677.1 crore up 8.4% YoY. This was in line with our expectations. The generation came in to the tune of 67.6 billion units during Q2FY21 at vs. expectations of 67.3 billion units. On the other hand, energy sold came in 62.8 BU's vs. expectations of 62.6 billion units. PLF's of the coal plants was at 64.3% in Q2FY21 vs. 58.2% in Q1FY21. As of Q2FY21, the commercial capacity stood at 50355 MW whereas the installed capacity stood at 51155 MW

- EBITDA came in at Rs. 7183 crore vs. our estimate of Rs. 8528 crore, mainly on account of higher than expected other expenses . The fuel cost per unit during Q2FY21 stood at Rs. 1.94/unit vs. Rs. 2.06/unit QoQ

- Reported PAT came in at Rs. 3504.8 crore vs. our estimate of Rs. 3128.8 crore, on account of lower than expected tax and lesser charge of provision for a one off to the tune of Rs. 560 crore in respect of rebate allowed to SEB's during period of lockdown. The company has also announced a buyback worth Rs. 2275 crore where the company will buyback at a price of Rs. 115 per share

We would be coming out with a detailed report soon.

Shares of NTPC LTD. was last trading in BSE at Rs.89.25 as compared to the previous close of Rs. 87.6. The total number of shares traded during the day was 1259000 in over 5163 trades.

The stock hit an intraday high of Rs. 89.5 and intraday low of 87.95. The net turnover during the day was Rs. 111892628.

Source : Equity Bulls

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