April 18, 2024

Axis Securities in a current report mentioned that NTPC’s substantial portfolio in standard energy, with a agency cost-plus enterprise mannequin,
positions it nicely in a rising peak energy cycle.

Shares of NTPC fell 1.2 p.c on the open on the NSE on January 30, a day after the corporate reported a 7.3 p.c rise in web revenue for Q3FY24, regardless of a 3.9 p.c decline in income on January 30. At 9:30am, the inventory was buying and selling at Rs 320.05.

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Based on a regulatory submitting on January 29, NTPC reported a income from operations of Rs 42,820.38 crore for the December 2023 quarter , down 3.9 p.c from Rs 44,601.84 crore a 12 months again. Internet revenue for the reporting interval elevated to Rs 5,208.87 crore in Q3FY24 from Rs 4,854.36 crore final fiscal. Earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) for the reporting interval additionally fell 18 p.c on-year to Rs 12,116.42 crore, whereas margin declined to twenty-eight p.c from 33 p.c.

Previous to the announcement, Bloomberg had projected the web revenue for the interval to be round Rs 4,930 crore, with the anticipated income reaching Rs 44,646.80 crore.

Additionally learn: NTPC could report robust Q3 earnings powered by demand surge, widening peak deficit

In a January 4 report, Axis Securities mentioned that NTPC’s substantial portfolio in standard energy, with a agency cost-plus enterprise mannequin, positions it nicely in a rising peak energy cycle. Based on the report, the portfolio construction contributes to steady money flows and can facilitate development led by renewable power. “The CEA tasks an incremental coal-based energy capability of 47 GW by FY32, through which NTPC will seize the main chunk with its brownfield energy tasks,” the report added.

Whereas analysts concluded that NTPC could be a superb guess, they added that additional rerating potential is feasible “if the height deficits improve in future and from worth unlocking by means of the inexperienced power IPO”.

Disclaimer: The views and funding ideas expressed by funding consultants on Moneycontrol.com are their very own and never these of the web site or its administration. Moneycontrol.com advises customers to test with licensed consultants earlier than taking any funding selections.

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