India's largest power generation company NTPC is set to declare its third quarter (October-December) earnings today. According to CNBC-TV18 poll, analysts expect the company will get benefited from incremental return on equity on 3 percent higher commercial capacity, higher plant availability factor (PAF) at coal stations on better availability of domestic/imported coal.
Fuel cost savings remain on-track in Q3 but the sales from its high margin spot market may slow due to cap on volume/realisation.
Earnings-Net sales may go up 6.2 percent at Rs 16,758 crore versus Rs 15,775 crore-EBITDA is seen up 6.2 percent at Rs 4,245 crore versus Rs 3,995 crore-EBITDA margin may be flat at 25.3 percent versus 25.3 percent-PAT may go down 2.4 percent at Rs 2,534 crore versus Rs 2,597 crore
What to watch out for: Analysts
-Expect Q3 plant availability of NTPC's coal-based thermal power station to improve Y-o-Y to around 93 percent as against 88 percent Y-o-Y and 87 percent in Q2
-9-month FY14 provisional coal PAF is 89.2 percent (April-October: 86.2 percent) as per management, implying sharp improvement in December quarter
-Availability of coal-based thermal power station in October and November 2013 was 89 percent and 97.5 percent, respectively
-Coal PLF improved seasonally in Q3 (82 percent versus 76 percent in Q2)
-Generation for the quarter is estimated at 59.5 billion units versus 60 billion units in Q3FY13
-Against a capacity addition of 4.3GW in FY13, the company has not commissioned any standalone capacity in April-October
-However, post commissioning of projects like Rihand, Barh Super Thermal Power Project, Muzaffarpur Thermal Power Station etc, total installed capacity of the group stands at 42,454 MW
-Provision of employee pension may bring down the profitability of the company
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!
