NTPC surprises with 25% jump in Q4 net profit

by 5paisa Research Team Last Updated: 2022-05-20T17:47:06+05:30

State-controlled NTPC posted better-than-expected performance with both profit and revenue from operations rising much ahead of what the brokerage houses were expecting the company to churn out for the quarter ended March 31, 2022.

The country’s top power generation company said fourth-quarter standalone net profit rose 25.5% to Rs 5,622 crore rom Rs 4,479 crore in the year-ago period ended March 31, 2021.

Analysts were expecting the company to actually post a lower profit than the same period last year. This was due to a higher base effect of the previous year when the company benefited from a one-time tax reversal on the accounts. While that did have an impact, the robust growth in profit before tax neutralised its effect to create a strong show for the bottom-line.

NTPC’s revenue from operations, too, beat street expectations. Standalone revenue rose 23.8% to Rs 32,905 crore from Rs 26,567 crore in Q4 of FY21.

The company’s board of directors recommended a final dividend of Rs 3 per equity share for the financial year 2021-22, subject to the approval of the shareholders. This is in addition to the interim dividend of Rs 4 per share for the financial year 2021-22 paid in February 2022.

NTPC shares rose nearly 1% to close at Rs 149.5 apiece in a strong Mumbai market on Friday.

Other Key Highlights

1) Added 1,204 MW of capacity to take the total installed capacity to 68,961.68 MW at the group level.

2) Standalone installed capacity rose 294 MW to 54,596.68 MW during the quarter.

3) Gross generation was 79.924 billion units, rising around 10% over the preceding quarter and about 3% from the year-ago period.

4) Average tariff for the full year FY22 is pegged at Rs 3.98/unit as against Rs 3.77/unit in FY21.

5) The average tariff in the first nine months was a tad lower at Rs 3.91/unit, indicating a marginal uptick in the fourth quarter.

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