State-run hydro power producer NHPC is expected to report a 18.7 percent growth year-on-year in profit after tax at Rs 840 crore for the quarter ended September 2014 compared to Rs 708 crore in the year-ago period, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales is seen rising a whopping 29.2 percent to Rs 2,131 crore from Rs 1,650 crore during the same period. Operating profit may jump 38.3 percent year-on-year to Rs 1,409 crore and margin may expand 440 basis points to 66.1 percent in the quarter gone by.
Analysts expect the company to generate 8.6 billion units compared to 6.7 billion units done in Q2FY14 led by commissioning of capacities, resumption of operations at Dhauliganga and higher than estimated plant load factor (PLF).
Additionally, commencement of work on Subanshiri Lower and TLDP IV projects is crucial, as interest and operation & maintenance cost for the project is being charged off to P&L and can be capitalised only as the project construction begins.
Non-recovery of dues from J&K for power supply is also affecting the working capital cycle, say analysts.
Company is facing severe delays in 2,000 MW Subansiri Lower Project, which has been stalled since December 2011 over protests by anti-dam activists. Teesta Low Dam – IV project has been stuck since March 2013.
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