NHPC shares in focus after Q3 earnings miss, sharp fall in EBITDA, margins

Shares of NHPC Ltd. are in focus on Thursday, February 5, after the company's third quarter earnings declined across parameters from the same quarter last year.

NHPC reported its December quarter earnings after-market hours on Wednesday, February 4.

Its revenue declined 2.9% to ₹2,220 crore from ₹2,286 crore in the previous year. Meanwhile, its earnings before interest, tax, depreciation and amortisation (EBITDA) declined 79.2% to ₹210 crore from ₹1,014 crore in the year-ago period.

Its other expenses increased 3.2 times to ₹1,537 crore from ₹481 crore in the third quarter of the previous year. It also reported a one-off charge of ₹781 crore due to early commissioning of the transmission system. Its total tax expense was at ₹573.2 crore compared to ₹104.3 crore in the previous year.

NHPC's margins contracted sharply to 9.5% from 44.4% in the year-ago period. Its net profit declined 5.2% to ₹219 crore from ₹231 crore in the previous year.

Its loss before movement in regulatory deferral account balance was at ₹855.5 crore from 296.4 crore in the previous year. Its movement in regulatory deferral account balances is at ₹1,176 crore compared to 34 crore.

Meanwhile, NHPC cancelled its memorandum of understanding (MoU) with Green Energy Development Corporation of Odisha Ltd. (GEDCOL) for floating solar power projects. NHPC is also set to withdraw as promoter of PTC India.

The company's standalone generation increased by 31% to 3.5 billion units (BU). Barring the Parbati hydroelectric project, its generation increased by 18% to 2.7 BU.

NHPC's standalone projected affected families (PAF) was at 76%. However, Parbati II PAF was 59%, impacting profitability. Also, Teesta V is still going under repair.

Shares of NHPC ended the previous session 0.4% up at ₹78.79 apiece. The stock has declined 5.8% in the past month.

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