NTPC Q2 results: Profit may rise 10-15%, sales growth likely to slow

Sharekhan said NTPC’s generation and sales will remain weak, but its net profit will grow 14.9 percent year-on-year with the increase in regulated equity.
NTPC is expected to report double-digit growth in net profit on low single-digit growth in sales for the September quarter. Ebitda is seen growing by 13-15 percent, aided by recent capacity additions, higher consultancy and project management fees and plant load factor (PLF).
Kotak Institutional Equities witnessed weak output, declining 6 percent YoY due to unfavourable base, but healthy growth in PAT reflecting growth in regulated equities – up 9 percent. Reported PAT in Q2FY24, which would include prior-period sales of Rs 620 crore, stood at Rs 4,355 crore, up 12.1 percent YoY.
Among power sector PSUs, NTPC’s production and sales will remain weak, but its net profit will grow 14.9 percent year-on-year with a rise in regulated equity, Sharekhan said. The brokerage expects net profit to be Rs 4,465 crore for the September quarter. The brokerage expects sales to grow 0.6 per cent year-on-year (7.4 percent quarter-on-quarter) to Rs 41,135 crore. Operating profit margin is estimated at 25.8 percent.
Elara Securities estimates that NTPC’s net profit will grow 10.1 percent to Rs 4,276 crore compared to the same quarter last year. The company estimates net sales to grow 5.5 percent to Rs 43,132 crore compared to the same quarter last year. Ebitda may grow 15.2 percent to Rs 12,143 crore.
MOFSL expects NTPC to post strong Q2FY25 results, helped by commissioning of new capacity, leading to increase in regulated equity and strong PLF due to robust power demand.
For NTPC, it expects standalone revenue to grow 2 per cent and EBITDA 13 percent YoY in Q2FY25. Strong PLF performance, addition of 1.3 GW of standalone commercial capacity (from Q2FY24) and robust consultancy and project management fees and overall growth in power generation will support growth.
Meanwhile, MOFSL has projected NTPC’s adjusted PAT to grow 41 per cent year-on-year. Its profit is estimated at Rs 4,613 crore. Sales are estimated at Rs 41,693 crore.