State-owned hydropower giant NHPC is scheduled to announce its earnings for the period ended March 31, 2023, on Monday. Analysts expecting the PSU firm to report growth on a year-on-year basis, but sequential performance may disappoint.
According to the broker's report, NHPC may report a single-digit growth in revenue, EBITDA and net profit the Q4 FY 23 on a YoY basis, whereas on a quarter-on-quarter QoQ comparison, they may decrease in the range of 30 - 75 percent.
NHPC has enacted several MoU deals to develop renewable energy projects. Management commentary over order inflows and more project wins will be key for the state-run hydropower major.
India's overall power generation grew 11.9 per cent in Q4 of FY23. Renewable energy RE generation surged 20.4 percent YoY in Q4, leading the overall generation mix after lignite. But overall, RE generation was at an average of around 11 percent of total power generation in Q4 FY23, said brokerage firms.
Elara Capital expects NHPC to report a revenue of Rs 1,576 in the second quarter of this year. 5 crore, up about 4.7 per cent YoY, but down about 30.6 per cent QoQ. EBITDA is seen at Rs 592.9, down about 60 per cent sequentially but up 40 per cent on a yearly comparison. The adjusted net profit is seen at Rs 593.3 crore, down more than 24 per cent QoQ but up 6 per cent YoY.
NHPC s net sales will be higher by 4.7% YoY in Q4 FY 23 E on a better generation even as profit may rise 5.9 YoY. Q 4 FY22 also witnessed better generation, primarily due to better water availability, Elara Capital said.
NHPC can earn Rs.9,999 for the entire financial year. 8 crore with an adjusted profit of Rs. 4,114 after tax PAT. Elara Capital, which has a buy rating on the stock, has a target price of Rs 55.
NHPC shares were trading at 43.39 yesterday, up 1 per cent, with a total market capitalization of 43,585. 41 crore were spent so far on infrastructure. The PSU has gained 30 per cent over the last 12 months, while the stock has been flat in the last six months.
Antique Stock Broking expects NHPC's earnings to increase 5 per cent in the quarter of 2023, down 39 per cent in QoQ. The company is seen with a growth of 4 per cent YoY, but down 74 per cent sequentially. Net profit is likely to be Rs. 585 crore, up 4 per cent YoY but down 24 per cent QoQ.
The Subansiri Lower hydroelectric project at NHPC has achieved substantial progress despite difficulties. In the beginning of 4 QFY 23, 84 percent of the expected capex has been incurred. While the first two units are expected to be commissioned by March 23, the remaining six units will go on-stream over FY 24 E, Antique said.