NTPC’s Q2 profit nearly flat YoY amidst lower generation, marginally better operating margin

Energy producer NTPC’s profit in the September-end quarter remained nearly flat on a year-over-year basis amidst lower power generation during the period and a slight increase in operating margins. The company’s standalone profits rose 0.1% to ₹4,654 crore compared to ₹4,648 crore during the corresponding period last year. Gross and commercial generation during the quarter declined approximately 5.3% each during the mentioned period. Although, operating margin bettered marginally by 8 basis points to 21.15%.

The company’s standalone revenues declined 1.35% YoY in the reported quarter to ₹40,689.36 crore. This includes revenues from their generation activities, the most important avenue of income for the company, sliding about 3% during the mentioned period. Electricity requirements in a favourable monsoon tend to fall amidst lowered demand for cooling devices from peak summers.

However, NTPC’s average tariffs in the first half of the ongoing financial year rose about 5% to ₹4.90 for each kilowatt-hour. This was primarily led by increase in fixed charges due to lower generation and new capacities having higher fixed costs.

Along with their quarterly results, the energy producer announced a dividend of ₹2.75 per equity share. It shall be payable November 25.

Scrips of NTPC closed marginally lower Thursday at ₹345.10 apiece or 0.8% lower on the BSE, and 0.63% lower at ₹345.10 apiece on the NSE.