InvestorQ : How do you view the results of NTPC announced in the week?
Moii Chavate made post

How do you view the results of NTPC announced in the week?

Tisha Malhotra answered.
11 months ago

India’s largest power generation company, which predominantly operates in the thermal power sector, has announced its quarterly results for the Dec-20 quarter during the week. As usual, the performance was stable showing steady growth with no great fireworks visible at this point of time. However, the stability offered is quite endearing.

NTPC net profits for the Dec-20 third quarter of the current fiscal were up 15.39% at Rs.3,766 crore. Even though the fact remains that the company got a smart boost from miscellaneous income generation, the healthy growth on such robust levels of profits is something to be commended and appreciated.

For the December 2020 third quarter, the gross revenues were up 3.96% at Rs.24,526 crore on a yoy basis. Despite power generation tapering due to the availability of coal and due to tepid industrial demand, NTPC reported 7.38% rise in operating profits at Rs.5,699 crore. OPM also gained marginally from 20.04% to 20.70% in the Dec-20 quarter.

The two things that contributed to the profit growth was a combination of the boost to net income came from improved operational performance and a 30% spike in miscellaneous income earned in the quarter on a yoy basis. PAT margins on the bottom line also improved from 12.33% in the Dec-19 quarter to 13.68% in Dec-20 quarter due to this effect.