NTPC - QTRLY RESULTS - Q3 FY 2012 - 3RD Q/E DEC, 2011 - NET SALES UP BY 14.24%; NET PROFITS DOWN BY -10.17% YoY. - APPEALS ON SOME TARIFF ORDERS PENDING IN COURTS

NTPC Limited

NSE Symbol        NTPC

NTPC has reported FLAT PERFORMANCE in sales and profits both in the third quarter ending Dec,2011.

Net Sales stands at Rs.15332.30 cr in Q3 FY 12 - - down by -0.29% from the previous qtr of Q2 FY 12 but up by  14.24% from the corresponding qtr of Q3 FY 11.

Raw Materials Consumption has increased more than proportionately (compared to Sales) to Rs.10793.29 cr – up by  1.35% from Q2 FY 12; and up by  29.44% from Q3 FY 11.

Other Expenditure  stands at Rs.963.82 cr in Q3 FY 11 – up by  36.79% from Q2 FY 12; and up by  71.75% from Q3 FY 11.

Total Expenditure stands at Rs.13231.96 Cr in Q3 FY 12 – up by  3.4% from Q2 FY 12 and up by  29.89% from  Q3 FY 11.

Profit from Operations       stands at Rs.2151.43 Cr – down by  -25.86% from Q2 FY 12; and down by  -41.88% from Q3 FY 11.

Other Income stands at Rs.861.02 cr – up by  25.14% from Q2 FY 12 and up by  326.06% from Q3 FY 11.

Profit before tax stands at Rs.2562.83 cr in Q3 FY 12 – down by  -21.36% from Q2 FY 12; and down by -24.86% from Q3 FY 11.

Tax expense stands at Rs.432.44 cr in Q3 FY 12 – down by  -48.19% from Q2 FY 12; and down by   -58.39% from Q3 FY 11.

Net Profit  stands at Rs.2130.39 cr in Q3 FY 12 – down  by  -12.12% from Q2 FY 12; and down by      -10.17% from Q3 FY 11.

Basic EPS stands at Rs.2.58 in Q3 FY 12; Rs.2.94 in Q2 FY 12;  Rs.2.52 in Q1 FY 12; Rs.3.37 in Q4 FY 11; Rs.2.88 in Q3 FY 11.

For the nine months ended Dec,2012, the EPS is Rs.8.04 against Rs.7.67 in same period last year. Last year’s annual total  EPS was Rs.11.04. Current year EPS also is like to be at around the same level or slightly more.

Current Market Price is Rs.174.25. The 52 week high price is Rs.197.80 and the  52 week low price is Rs.152.05. The PE Ratio is 15.78.

Though Electricity Generation sector is riddled with various problems relating to end users, it is heartening to note that NTPC is able to ensure 1oo% payment of its Bills. Though, it is difficult to increase Rates significantly as the CERC will approve Rates a little conservatively only and that too, retrospectively with some delays - NTPC has been growing steadily - with assured profits. 

Those who wish to avoid risks; want steady dividend payments and steady (but not very slow) but assured Growth can opt for NTPC   shares for long term investment.

Public shareholding in NTPC is low at 15.50%.

The Tariffs charged by NTPC are regulated under the orders of Central Electricity Regulatory commission which issued the latest amendment in June,2011.

CERC issued final orders for most stations.

NTPC, aggrieved by some orders of CERC has filed appeals with APTEL. APTEL disposed off the appeals favourably to NTPC.CERC filed appeals in Supreme Court on some issues. This is pending disposal. This shows that NTPC is ready to defend its interests  and profitability against the orders of CERC.

During the quarter, one unit of 600 MW  at Sipat has been declared commercial w.e.f.1^st Oct,2011.

FROM FY 11 ANNUAL REPORT :

NTPC is maintaining a Dividend of Rs.3.80 per share usually. Its FY 11 annual Report says that – its customer relations Management is such that, it has resulted in 100% realization of its Bills for 8 consecutive years.

Its capacity as at FY 11 was 34854 MW.In FY 12, a total of 14088 MW is under construction, including 3890 MW in JVs. NTPC is targeting to place orders for 13140 MW capacity through bulk tenders for units of 660 MW and 800 MW in the near future. NTPC has signed PPAs for 49000 MW capacity with state Utilities

NTPC is a Maharatna PSU wit the vision to become the largest and best Power producer, powering India’s Growth.

In FY 11, it has added 2490 MW capacity. For FY 12, the target is 4320 MW.

RESULTS TABLE

N T P C	31-Dec-11	30-Sep-11	%DIF1	30-Jun-11	31-Mar-11	31-Dec-10	%DIF2
Net Sales	1533230	1537754	-0.29	1417149	1551894	1342128	14.24
Other Oprtng Income	5109	32125	-84.1	35274	45867	46732	-89.07
Raw Materials	1079329	1064940	1.35	974982	972556	833864	29.44
Employees Cost	71882	78461	-8.39	69072	70819	68852	4.4
Depreciation	75603	65828	14.85	64113	69814	59855	26.31
Other Expenditure	96382	70462	36.79	86472	126454	56117	71.75
Total Expenditure	1323196	1279691	3.4	1194639	1239643	1018688	29.89
Profit from Operations	215143	290188	-25.86	257784	358118	370172	-41.88
Other Income	86102	68807	25.14	64366	20556	20209	326.06
Interest	44962	33117	35.77	37435	52995	49318	-8.83
Profit before tax	256283	325878	-21.36	284715	325679	341063	-24.86
Tax expense	43244	83466	-48.19	77137	47495	103915	-58.39
Net Profit	213039	242412	-12.12	207578	278184	237148	-10.17
Face Value (In Rs	10	10	0	10	10	10	0
Paid Up Equity	824546	824546	0	824546	824546	824546	0
Basic EPS	2.58	2.94	-12.24	2.52	3.37	2.88	-10.42
Public holding (%)	15.5	15.5	0	15.5	15.5	15.5	0

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