NTPC shares fall 3% despite Q2 results beating Street estimates; PSU stock outruns Nifty YTD

stock has risen around 29 percent so far this year, outperforming Nifty's returns of 12 percent.

Shares of NPTC fell over 3 percent in early deals on October 25 even after state-run power generator reported a positive set of earnings for the quarter ended September 30, 2024, beating Street estimates.

NTPC's consolidated net profit rose 14 percent year-on-year (YoY) to Rs 5,380 crore in Q2FY25. Its revenue from operations, however, declined marginally YoY to Rs 44,696 crore in the September quarter. The company’s board also approved interim dividend of Rs 2.5 per share.

NTPC is India's largest integrated power utility, contributing 25 percent of the country's power requirement. The PSU generated 220 billion units (BU) in H1 FY25 as compared to 212 billion units in the same period last year.

NTPC’s standalone gross generation in H1 FY25 was 186 billion units as compared to 179 billion units in the corresponding previous period.

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The gross electricity generation of NTPC decreased to 88.46 billion units (BU) during the second quarter from 90.30 BU a year ago. Its coal output from captive mines increased to 9.03 MMT in the quarter from 5.59 MMT in the year-ago period. The production also rose during April-September this fiscal to 18.67 MMT from 11.83 MMT.

NTPC's Plant load factor (PLF) or capacity utilisation of coal-based thermal power plants fell to 72.28 percent in the quarter from 75.83 percent. Domestic coal supply improved to 54.75 MMT in the second quarter from 54.16 MMT.

NTPC coal stations achieved a Plant Load Factor (PLF) of 76.31 percent as against the national average of 70.63 percent during H1 FY25. The total installed capacity of the NTPC group stood at 76,443 MW in Q2FY25 against 73,824 MW in the year-ago period. On a standalone basis, NTPC reported a total installed capacity of 59,168 MW, up from 57,838 MW in Q2FY25.

At 9:26 am, NTPC shares were trading around 3 percent lower at Rs 399 on the National Stock Exchange (NSE). The stock has risen around 29 percent so far this year, outperforming Nifty's returns of 12 percent.

In the past 12 months, the counter has rallied 72 percent. In comparison, Nifty rose 27 percent during this period.

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