Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  NTPC gains 3% after strong March quarter performance
BackBack

NTPC gains 3% after strong March quarter performance

During the financial year, NTPC's consolidated net profit jumped 25.77% to ₹14,969.40 crore on 1.88% rise in revenue from operations to ₹1,11,531 crore

NTPC is a maharatna company operating in the power generation business. (REUTERS)Premium
NTPC is a maharatna company operating in the power generation business. (REUTERS)

Mumbai: Shares of NTPC rose over 3% on Monday after the company's consolidated net profit rose 185.3% to 4,649.49 crore for the quarter ended 31 March.

At 12:50 pm, NTPC was at 116.40 up 2.51% from its previous close, while the benchmark index, Sensex lost 0.20% to 52,241.80.

NTPC group's installed capacity rose 3,700 MW (megawatt) to 65,810 MW as on 31 March, 2021 over 62,110 MW as on 31 March 2020 and its commercial capacity increased by 3,364 MW to 64,490 MW as on 31 March 2021 as against 61,126 MW as on 31 March 2020.

Analysts at Motilal Oswal Financial Services, in a note to clients, said "NTPC has increased its longer-term renewable energy (RE) capacity target to 60GW by 2032 from 32GW as this seems ambitious, implying 5–5.5GW p.a. of RE additions over the next 11 years, the co. has taken steps to improve its renewables footprint."

Even as the company gradually scales up on its renewables journey, it expects continued capitalization for its thermal projects to drive 12% growth in regulated equity over FY21–23 estimates and improve return on equity. "Receivables have significantly reduced as money from Power Finance Corporation(PFC)–Rural Electrification Corporation(REC) has come through and power demand continues to recover," it said. The brokerage has a buy rating on the stock.

Net sales fell 0.9% to 30,102.60 crore for March 2021 quarter over crore for corresponding quarter previous year. Profit before tax dropped 14.38% to 4,017.72 crore in March 2021 quarter against 4,692.53 crore in March 2020 quarter. Results were announced on Saturday.

During the financial year, NTPC's consolidated net profit jumped 25.77% to 14,969.40 crore on 1.88% rise in revenue from operations to 1,11,531.15 crore in FY2021.

The board of NTPC has approved the enhancement of borrowing limit of the company to 2,25,000 crore from 2,00,000 crore. Meanwhile, the board has also recommended the final dividend of 3.15 per equity share for the FY 2020-21.

NTPC said it had created an additional tax provision amounting to 2,661.47 crore during previous years as it proposed to settle all pending income tax disputes. During the year, the company decided to settle its pending disputes for three years under the Vivad se Vishwas Scheme. Accordingly, excess tax provision amounting to 1,889.05 crore has been written back during the quarter ended March 2021.

Coal produced from captive mines - commercial grew 42.88% to 3.708 million metric tonnes (MMT) in March 2021 quarter from 2.595 MMT in March 2020 quarter. Total coal suppy position declined 2.19% to 45.68 MMT in March 2021 quarter as compared to 47.86 MMT in March 2020 quarter. Gas consumption tanked 59.42% to 1.12 million metric standard cubic meter per day (MMSCMD) in Q4 March 2021 over 2.76 MMSCMD.

NTPC is a maharatna company operating in the power generation business. According to the latest shareholding pattern, Government of India holds 51.10% stake in the company.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 21 Jun 2021, 01:05 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie