InvestorQ : How were the latest results of NTPC for the Mar quarter and what is your view on the stock?
shrinidhi Rajan made post

How were the latest results of NTPC for the Mar quarter and what is your view on the stock?

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Riya Dwivedi answered.
4 months ago

NTPC reported 70% fall in net profits to Rs.1524 crore for the Mar-20 quarter. This was largely on account of higher tax provisions during the quarter under the Vivad Se Vishwas scheme offered by the CBDT for quick redressal. Total revenues of NTPC for the Mar-20 quarter were nearly 20% higher at Rs.31,315 crore.

During the quarter, the company made an additional tax provision of Rs.2744 crore as some group companies decided to settle pending income tax disputes under the Vivad se Vishwas Scheme. They are currently in the process of completion of procedural formalities under the scheme and the provision has been made by NTPC towards that count.

For the full fiscal year 2019-20, the net profits were 15% lower at Rs.11,902 crore. Revenue income for the financial year 2019-20 stood 10% higher at Rs.112,373 crore. For the full year, NTPC has paid dividends to the tune of Rs.3.15 per share.

The revenues were higher despite gross power generation being marginally lower at 68.27 billion units (BU) in the Mar-20 quarter. But there was good news for NTPC on the utilization levels as the plant load factor or the PLF was sharply up from 69.52% to 77.58%. This marks a huge improvement in PLF over first 3 quarters as coal supplies were restored.

NTPC has been one of the few power franchises to have shown consistent profits on a normalized basis. With more opportunities to acquire power properties at attractive rates, NTPC may finally be in as sweet spot for the equity investors. It may be time to accumulate the stock from a medium term perspective.