NHPC's third quarter profit after tax is likely to increase 15.7 percent year-on-year to Rs 300 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales of the state-run hydro power generation company are seen going up 22.6 percent to Rs 1,378 crore during October-December quarter from Rs 1,123 crore in the year-ago period.
Operating profit may climb 21.4 percent year-on-year to Rs 757 crore but margin may decline 60 basis points to 54.9 percent in the quarter gone by.
Analysts expect strong generation growth (20 percent Y-o-Y) due to resumption of operations at Dhauliganga (280 MW) in May 2014 and contribution from Uri II and Parbati III (520 MW)
In addition, plant availability factor (PAF) may improve to 88 percent versus 74 percent Y-o-Y (last year it had an impact of closure of Dhauliganga project) leading to higher incentive income.
Benefit of earnings growth may be offset by continued expensing of cost, related to the Subansiri project.
Estimates seem to factor in higher incentives income and lower under-recovery, which may be resulting in higher core return on equities. Hence, NHPC’s PAT could surprise negatively.
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