NHPC Q4 numbers out; Needs a healing touch

The power company engaged in hydroelectric power generation has posted its Q4 results on May 28 2016. Company has witnessed a marginal growth in the revenues but thrice QoQ and sixfold YoY drop in the net profits. The drop was in the wake of higher other expenses and tax expenses.

Company’s standalone revenues for Q4FY16 have come in at Rs 1585.58 crore as against Rs 1440.9 crore, an increase of 10 per cent. However, company has seen a drop in its EBITDA by 28.8 per cent at Rs 581.26 crore as against Rs 816.24 crore in the last quarter. Company’s other expenses have increased two-fold from Rs 375.79 crore in Q3FY16 as against Rs 740.55 crore in Q4FY16.  

Tax expenditure has risen and stands at Rs. 194.2 crore, an increase of 82.6 per cent. Thereby Net profit has dropped 73.2 per cent from Rs 388.02 crore for Q3FY16 to Rs 104.08 crore this quarter.

However, being seasonal in nature, year on year comparison would be apt. The Year on Year (YOY) results show that, Company’s standalone revenues have risen 9.4 per cent from Rs 1449.84 crore in the same quarter last year.

EBITDA of company has dropped by 33.3 per cent from Rs 872.08 crore. Year on year Net profit (PAT) too has dropped 83.9 per cent from Rs 644.51 crore. Net profit has dropped despite of comparatively lower tax burden; but higher exceptional items amounting to Rs 521.95 crore in Q4FY15 have been the reason for the drop.

Annually NHPC has posted consolidated revenues of Rs 8490.48 crore for the year ended March 2016 compared to Rs 8103.25 crore in March 2015, an increase of 4.8 per cent. Net profit too has risen from Rs 2491.36 crore in FY15 to 2688.26 crore in FY16, an increase of 7.9 per cent.

Apart from power generation, the company is engaged in other operations related to contracts, project management and consultancy works. The Company has 18 power stations and 4 construction projects in 7 states across the country with an installation base of 6507 megawatts from 21 hydropower stations.

Since the results, the stock has been rising and has hit its 52 week high at 24.90 levels.