State-run hydro power generation company NHPC's first quarter net profit may jump 26.5 percnet year-on-year to Rs 779 crore, according to average of estimates of analysts polled by CNBC-TV18. PAT growth may be led by reversal of Teesta low dam project (TLDP) and Subanshri project's provisional expenses.
NHPC is likely to report muted growth across generation and sales volumes, which may be resulting in a marginal rise in revenue.
Total income from operations is seen rising 4.4 percent to Rs 2,123 crore from Rs 2,034 crore during the same period.
Analysts expect gross generation growth of 2-3 percent Y-o-Y, led by commissioning of capacities and higher plant load factor (PLF). Tariff realisation is expected to increase 1.2 percent year-on-year.
Operating profit (earnings before interest, tax, depreciation and amortisation) may rise 12 percent to Rs 1,452 crore and margin may expand 470 basis points to 68.4 percent in June quarter.
Earnings are not comparable to previous periods owing to recognition of offset of cost (Rs 130 crore in Q1FY16) related to the Subansiri project. Commencement of work on Teesta-IV project has led to capitalisation of interest against booking through P&L earlier. However, until work on Subansiri begins, interest accrual in P&L would impact reported earnings.
Key things to watch out for would be plant availability factor for the quarter, cost approval for commissioned projects, status of dispute with J&K government and status of under construction plants mainly Subansiri and Parbati II.
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