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NTPC: Weak Demand Scenario Continues - Views on News from Equitymaster
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NTPC: Weak Demand Scenario Continues
Feb 4, 2016

NTPC declared results for the quarter ended December 2015. The company reported an 8% YoY decline in revenues, while profits declined by 19% YoY. Here is our analysis of the results.

Performance summary

  • Standalone revenues down by 7.7% YoY during the quarter.
  • Profit before tax fall by 18.1% YoY during the quarter.
  • Unadjusted profits decline by 18.9%. However, when adjusted for one off items (non-recurring profits), profits are lower by about 10% YoY.

Standalone financial performance

(Rs m) 3QFY15 3QFY16 Change 9MFY15 9MFY16 Change
Net sales 188,273 173,749 -7.7% 538,943 524,109 -2.8%
Expenditure 142,004 127,898 -9.9% 424,986 403,560 -5.0%
Operating profit (EBDITA) 46,269 45,851 -0.9% 113,957 120,549 5.8%
EBDITA margin (%) 24.6% 26.4%   21.1% 23.0%  
Other income 5,140 2,447 -52.4% 15,853 7,573 -52.2%
Depreciation 12,534 13,935 11.2% 35,205 39,543 12.3%
Interest 7,008 8,251 17.7% 20,361 23,705 16.4%
Profit before tax 31,867 26,113 -18.1% 74,245 64,874 -12.6%
Tax 1,128 1,184 5.0% 776 (10,391) -1438.7%
Effective tax rate 4% 5%   1% -16%  
Profit after tax/(loss) 30,739 24,929 -18.9% 73,468 75,265 2.4%
Net profit margin (%) 16.3% 14.3%   13.6% 14.4%  
No. of shares (m)       8,245.5  
Diluted earnings per share (Rs)*         12.7  
Price to earnings ratio (x)         9.9  

*Based on trailing 12-months earnings

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