November 08, 2016 / 17:41 IST
Axis Direct's research report on NTPC
Adjusted PAT (Rs 23.4 bn) grew 8% YoY(in line with regulated equity) despite generation being flat YoY (60.6 bn units) on account of higher fixed charges. PLF of coal-based plants was subdued (75%) due to bountiful monsoon.
Clarity awaited on impact of change in mode of calculation of Gross Calorific Value (GCV) of coal from “as fired” measured in boiler (till Sep’16) to “as received” from coal wagons at unloading point (post Sep’16). Management believes NTPC will get fuel pass-through, alleviating concerns over earnings, but clarity is awaited. Further, clarity is awaited on (a) quantum of difference in GCV due to change in calculation,(b) whether NTPC will have to fund difference in GCV between Apr’14-Oct’16 retrospectively. We believe this is anoverhang.
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