Earnings Outlook
Robust generation to aid NHPC's Oct-Dec revenue growth
This story was originally published at 22:07 IST on 5 February 2025
Register to read our real-time news.Informist, Wednesday, Feb. 5, 2025
MUMBAI – State-run hydroelectric power company NHPC Ltd.'s revenue for the December quarter is expected to be aided by robust electricity generation, analysts have said. The Navratna enterprise will detail its financials for the latest quarter on Friday.
The net profit of NHPC is expected to be in the range of INR 5.91 billion to INR 7.11 billion, based on three analysts' estimates available with Informist. Elara Securities' estimate of INR 5.91 billion is the lowest among the three, while JM Financial Institutional Securities' forecast of INR 7.11 billion is the highest. Kotak Institutional Equities expects the company to report a net profit of INR 6.06 billion.
NHPC's net profit for the September quarter was INR 9.05 billion and for the December quarter of 2023, it was INR 5.46 billion. In the September quarter, NHPC's profit after tax had declined 37% on year due to a fall in power generation and a large tax credit of INR 5 billion in the base quarter.
The revenue from operations of NHPC for the reporting quarter could be between INR 17.93 billion and INR 21.07 billion, based on three brokerage firms' estimates. Kotak's forecast of INR 17.93 billion is the lowest, followed by INR 18.19 billion by Elara Securities and INR 21.07 billion by JM Financial.
For the September quarter, NHPC's revenue from operations was INR 25.51 billion and for the third quarter of 2023-24 (Apr-Mar), it was INR 16.97 billion.
Elara Securities noted that hydroelectricity generation during the final quarter of 2024 was robust, at 27% year-on-year. Hydro generation in October increased 27% on year, while in November and December it grew 31% and 24%, respectively. Generation by NHPC, India's largest hydro generation company, grew 4% on year to 3762 million units.
NHPC has regulated equity of INR 129 billion on a standalone basis, which Elara Securities says is stable, as the company did not add any new hydro capacity during the quarter.
NHPC is expected to report earnings after interest, tax, depreciation, and amortisation between INR 6.45 billion and INR 10.68 billion for the quarter ended December. JM Financial's estimate of INR 10.68 billion is the highest, followed by Elara Securities' INR 8.18-billion and Kotak's INR 6.45-billion forecasts.
On Wednesday, shares of NHPC closed at INR 79.53 on the National Stock Exchange, up 0.8%. Between Nov. 7, when the company reported its September quarter earnings, and Wednesday, its shares contracted a little over 2%.
Following are the Oct-Dec earnings estimates for NHPC based on reports compiled by Informist from three brokerages in descending order of the estimate of net profit:
| Brokerage | Net sales (in INR mln) | Net profit (in INR mln) | EBITDA (in INR mln) |
| JM Financial Institutional Securities Pvt. Ltd. | 21,069.00 | 7,108.00 | 10,675.00 |
| Kotak Institutional Equities | 17,931.00 | 6,061.00 | 6,445.00 |
| Elara Securities (India) Pvt. Ltd. | 18,191.00 | 5,906.00 | 8,183.00 |
| Average | 19,063.67 | 6,358.33 | 8,434.33 |
End
Reported by Anand JC
Edited by Avishek Dutta
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