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NTPC: Subdued demand hits revenues - Views on News from Equitymaster
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NTPC: Subdued demand hits revenues
Oct 6, 2015

NTPC declared results for the quarter ended June 2015 (1QFY16). The company reported a revenue decline of 6.8% YoY during the quarter while profit before tax was down by 25.2% YoY. Here is our analysis of the results.

Performance summary

  • Standalone revenues decline by 6.8% YoY due to fall in PLF and owing to plant maintenance undertaken during the quarter.
  • Operating profits declined by 2.7% YoY, however margins expanded to 20.1% from 19.3% on a Y-o-Y basis.
  • Lower other income coupled with lower demand from the State Electricity Board (SEB) led to decline of profit before tax by 25.2%.
  • Nnet profits decline by 3% YoY.

Standalone financial performance

(Rs m) 1QFY15 1QFY16 Change
Net sales 183,368 170,846 -6.8%
Expenditure 148,023 136,469 -7.8%
Operating profit (EBDITA) 35,345 34,377 -2.7%
EBDITA margin (%) 19.3% 20.1%  
Other income 5,326 2,387 -55.2%
Depreciation 11,155 12,380 11.0%
Interest 6,679 7,309 9.4%
Profit before tax 22,836 17,076 -25.2%
Tax 824 (4,278) -618.9%
Effective tax rate 4% -25%  
Profit after tax/(loss) 22,012 21,354 -3.0%
Net profit margin (%) 12.0% 12.5%  
No. of shares (m)   8,245.5  
Diluted earnings per share (Rs)*   12.4  
Price to earnings ratio (x)   10.0  
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