India's largest thermal power producer NTPC Limited has reported a decline of 16 percent in its July-September quarter profit at Rs 2071.6 crore against 2492.9 crore, in a year ago period.
In an interview to CNBC-TV18, Rahul Modi of Antique Stock Broking says the company’s earnings were mostly in-line with street expectations barring adjustments.
Below is the verbatim transcript of the interview:
Q: Your sense on NTPC and the key parameters?
A: It’s too early to comment on operational numbers but in terms of financial numbers its inline with our expectations. The net profit has been reported at Rs 2071 crore versus our estimates of around Rs 2085 crore, so it is broadly inline, but always on quarterly there are some adjustments which needs to be looked at and that can only be confirmed post the discussion with the management. However, prima facie I can say that the numbers are looking good in expected line.
Q: Margins have come in at 18.6 percent, so it has come down quite a bit from 25.3 percent on year on year basis. You would not say that you are disappointed with the operating margins?
A: Typically for utility companies you do not tend to look at that but if you do a comparison on year on year basis then there has been some changes with regards to the CERC regulation but impact was seen in the first quarter. So, it’s not a big surprise at least for us on the street. So, taking that into account the numbers do not look bad.
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