NTPC - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 113: MCap - Rs. 10105 crore)

NTPC reported operationally decent set of Q4FY21 results. In terms of operational performance, generation and energy sold were in line with our estimates led by smart recovery in PLF's (higher than national average) and strong capacity trends over last two years. The company has as strong capacity addition target for FY22 as well. The key takeaway was the aggressive doubling of renewable capacity addition target by 2032 to 60000 MW from an earlier set target of 30000 MW. It also announced a final dividend of Rs. 3.15 per share in addition to interim dividend of Rs. 3 per share taking total dividend per share for FY21 at Rs. 6.15/share.

Q4FY21 Earnings Summary

- Reported revenues came in at Rs. 26566.9T crore. On the operational parameter front, expected generation during Q4FY21 at 77.6 billion units vs. expectations of 77.6 billion units. On the other hand, energy sold was tad higher than estimates at 72.2 BUs vs. 72 billion units. PLF's of the coal plants was recovered sharply at 77.1% vs. 64.3% QoQ. As of FY21, the commercial capacity stood at 51725 MW whereas the installed capacity stood at 52385 MW

- During FY21, the company on a consolidated basis has added capacity to the tune of ~3700 MW. The company is confident of achieve commercial capacity addition of 6000MW (both solar and thermal ) in FY22. On the renewables front, NTPC expects to have a cumulative capacity to the tune of 3000/8000/15000 MW by FY22/FY23/FY24E and has also doubled its long-term capacity addition target in the renewables space

- EBITDA came in at Rs. 6507.8 crore. The fuel cost per unit during Q4FY21 stood at Rs. 2.12/unit vs. Rs. 2.04/unit QoQ. Reported PAT came in at Rs. 4479.2 crore vs. our estimate of Rs. 4573 crore, on account of higher other income on account of late payment fees and dividend received from subsidiaries and JVs

- From the balance sheet perspective, receivables greater than 45 days which stood at Rs. 19164 crore in September 2020 and Rs. 16720 crore a December 2020 on account of overdues from SEB's has drastically come down to Rs. 6500 crore as of FY21

We would be coming out with a detailed report soon.

Shares of NTPC LTD. was last trading in BSE at Rs.117.95 as compared to the previous close of Rs. 113.55. The total number of shares traded during the day was 2295379 in over 15381 trades.

The stock hit an intraday high of Rs. 118.35 and intraday low of 113. The net turnover during the day was Rs. 267222862.

Source : Equity Bulls

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