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- 31 Oct 2022
- ICICIdirect Research
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NTPC REPORTS BETTER THAN EXPECTED Q2FY23 NUMBERS
NTPC - 398 Change: -6.15 (-1.52 %)News:
Reported revenues came in at Rs 41015.14 crore vs. estimate of Rs 33969.6 crore. The key reason for the beat was higher than expected generation during Q2FY23 at 85.5 billion units vs. expectations of 81.1 billion units. On the other hand, energy sold was also higher than estimates at 80.2 BUs vs. 75.5 billion units. PLFs of coal plants were at 74.08% vs. 80.5% in Q1FY23. As of Q2FY23, the commercial capacity was at 54935 MW whereas the installed capacity was at 55185 MW. Coal production from captive mines was at 4.32 million tonnes vs. 4.10 million tonnes in Q1FY23. EBITDA came in at Rs 9520.11 crore vs. our estimate of Rs 7224.4 crore, mainly on account of higher than expected revenues and higher EBITDA margins. The average tariff per unit during H1FY23 was at Rs 4.77/unit vs. Rs 3.86/unit YoY. Reported PAT came in at Rs 3330.17 crore vs. our estimate of Rs 3211.9 crore, on account of higher depreciation and interest charges
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NTPC has set aggressive renewables long term capacity addition target of 60000 MW by 2032. Company plans to add another 18 GW in renewable energy by FY25. The company expects to spend ~40% of total capex planned for FY23 on renewable projects. This share is going to further increase from FY25 beyond, which indicates very strong addition in renewable portfolio from FY24 onwards which should pan out well for the NTPC. On operational front with total installed capacity of NTPC standing at 70,254 MW and PLF of NTPC coal stations standing at 77.3% in H1FY23 is reflecting high levels of operational excellence
Impact:
Positive