NTPC Q1 net may rise 4.8% at Rs 2525.1 cr: Motilal Oswal
Motilal Oswal expects NTPC to report a 14.5 percent growth quarter-on-quarter (growth of 4.8 percent year-on-year) in net profit at Rs 2525.1 crore.
July 29, 2013 / 11:22 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the power sector. The brokerage house expects NTPC to report a 14.5 percent growth quarter-on-quarter (growth of 4.8 percent year-on-year) in net profit at Rs 2525.1 crore.
Revenues are expected to decrease by 5.6 percent Q-o-Q (down 2.7 percent Y-o-Y) to Rs 15532.6 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 1.2 percent Q-o-Q (up 8.9 percent Y-o-Y) to Rs 3952.6 crore.Motilal Oswal on NTPCWe expect PAT to grow 4.8 percent Y-o-Y to INR25.2 billion; the full impact of capacity commercialized in FY13 would be visible in 1QFY14.NTPC's generation is likely to decline 1.6 percent Y-o-Y, mainly led by lower generation from gas-based capacity at 3.9BU as compared to 5.7BU in 1QFY13. Coal-based generation is likely to remain flat (we estimate 2% growth YoY), led by maintenance shutdown during the quarter.For FY14, NTPC's capacity addition target stands at 1.8GW. YTD FY14, its capacity addition has been NIL. We expect commercialization to be better than commissioning in FY14, as capacity of 2GW was added in FY13 but commercialization is still pending.NTPC's board has approved the fuel supply agreement (FSA) with Coal India. NTPC and COAL have agreed to the following: (1) third-party
sampling, (2) NTPC will accept below 3,100 GCV coal, and (3) COAL will ensure that auto mechanical samplers are installed.We expect NTPC to report a PAT of INR108 billion in FY14 (up 17 percent) and INR123 billion in FY15 (up 15 percent). The stock trades at 9.6x FY15E earnings. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
