Wednesday, January 23, 2013

NTPC - RESULTS FOR - Q3 FY 2012-13 - Q/E DEC,2012 - NET SALES UP 3%; NET PROFIT UP 22%



Q/E DEC,2012

NTPC has performed reasonably well in the third quarter ending Dec,2012.

Net Sales   for Q3 FY 13 stands at Rs.15774.91 Cr; compared to Rs.16119.67 Cr(-2.14%) in Q2 FY 13; and Rs.15332.30 Cr in Q3 FY 12 (+2.89%). The increase in net Sales on YoY basis is very Marginal.

Total Expenditure for Q3 FY 13 stands at Rs.12608.45  Cr; compared to Rs.12681.92 Cr (-0.58%) in Q2 FY 13; and Rs. 13231.96 Cr in Q3 FY 12 ( -4.71%). Expenditure has fallen on proportionate basis compared to Net Sales.

Profit before Interest, Dep. & Taxes      for Q3 FY 13 stands at Rs.3166.46Cr; compared to Rs.3437.75 Cr(-7.89%) in Q2 FY 13; and Rs.2100.34 Cr in Q3 FY 12 (+50.76%).

Net Profit   for Q3 FY 13 stands at Rs.2596.76 Cr; compared to Rs.3142.35 Cr (-17.36%) in Q2 FY 13; and Rs.2130.39 Cr in Q3 FY 12 (+21.89%). Due to reduction in expenditure, Net profit on YoY basis has jumped 22%, though Improvement in Net Sales is Marginal.

Diluted EPS        for Q3 FY 13 stands at Rs.3.15; compared to Rs.3.81 in Q12 FY 13; and Rs.2.58 Q3 FY 12.    
Cost of materials         for Q3 FY 13 stands at Rs.10098.18 Cr; compared to Rs.9932.66 Cr (+1.67%) in Q2 FY 13; and Rs. 10793.29 Cr in Q3 FY 12 ( -6.44%). There is a significant decrease in cost of Materials consumed which has contributed to Net Profit.

Employee  expense     for Q3 FY 13 stands at Rs.691.64          896.45 Cr (-22.85%) in Q2 FY 13; and Rs.718.82 Cr in Q3 FY 12 (-3.78%). Employee expense has come down well, contributing to Net Profit.

Depreciation  for Q3 FY 13 stands at Rs.828.76 Cr; compared to Rs.786.52 Cr (5.37%) in Q2 FY 13; and Rs.756.03 Cr in Q3 FY 12 (9.62%).

Other expenses for Q3 FY 13 stands at Rs.989.87 Cr; compared to Rs.1066.29 Cr (-7.17%) in Q2 FY 13; and Rs.963.82 Cr in Q3 FY 12 (+2.7%).

Total expenses  for Q3 FY 13 stands at Rs.12608.45 Cr; compared to Rs.12681.92Cr (-0.58%) in Q2 FY 13; and Rs. 13231.96 Cr in Q3 FY 12 ( -4.71%).

Profit before tax for Q3 FY 13 stands at Rs.3390.72 Cr; compared to Rs.4182.50 Cr (-18.93%) in Q2 FY 13; and Rs.2562.83 Cr in Q3 FY 12 (+32.3%). Profit Before Tax has jumped significantly.

Tax Expenses    for Q3 FY 13 stands at Rs.793.96   Cr; compared to Rs.1040.15 Cr (-23.67%) in Q2 FY 13; and Rs.432.44 Cr in Q3 FY 12 (+83.6%). Due to Huge increase in Tax expense, Net Profit increase has come down slightly.

Net Profit   for Q3 FY 13 stands at Rs.2596.76  Cr; compared to Rs.3142.35 Cr (-17.36%) in Q2 FY 13; and Rs. 2130.39 Cr in Q3 FY 12 (+ 21.89%).

Face Value of Share is Rs.10.; Paid-up Equity  stands at Rs.8245.46 Cr.

Basic EPS for Q3 FY 13 stands at Rs.3.15; compared to Rs.3.81 for Q2 FY 13; and Rs.2.58 for Q3 FY 12.

For the Nine months ended Dec,2012, the Basic EPS is Rs.9.09 against Rs.8.04 in same period last year; and Rs.11.19 for the whole of FY 12.

Public Shareholding is small at      15.5%.         

Current Market Price = Rs.162.30; 52 week high/low price : 190.75/137.00; On an annualized EPS of Rs.12.6 (3.15 x 4) , the PE Ratio works out to 12.88 for this Public Sector Maharatna company.


NTPC has been ranked:
  • # 1 Independent Power Producer in the world in 2011 by Platts, a part of the prestigious McGraw Hill Group, in its top 250 Global Energy Companies ranking.
  • # 337 in the Forbes Global 2000 List of the world’s largest companies for the year 2012, emerging as the 3rd largest electric utility in Asia.
NTPC has demonstrated the highest ever growth in its history – here are a few highlights:
    • 2,820 MW commissioned in 2011-12, the highest ever in a single year, surpassing the previous year’s capacity addition record of 2,490 MW.
    • 9,610 MW added during 11th Plan period ending March 2012, exceeding the Plan target.
    • Highest ever capex of Rs.15,994 crore in 2011-12 with group capex of Rs. 19,973 crore.
    • 2,160 MW added in the first quarter of 2012-13.
    • 6,870 MW added in the past two years which is almost 20 per cent of the total capacity added since inception of NTPC.
    • Three 660 MW Super Critical Units commissioned and declared commercial at Sipat, the higher efficiency reduces CO2 emissions substantially.
    • 7,041 MW of work awarded since January 2012.
    • 16,809 MW under construction.
Operating one of the largest fleets in the world consisting of 120 units (only NTPC units) on commercial operation, the operational highlights of 2011-12 are:
    • 6 out of 15 coal stations had Plant Load Factor (PLF) of over 90 per cent.
    • 27.4 per cent share of NTPC group in total power generated in India, thus maintaining leadership position in the power sector.
    • 85 per cent PLF achieved by the coal based stations as against the national average of 73.32 per cent.
    • 89.5 per cent Availability Factor.
The overall growth and excellence achieved in the year 2011-12 has led NTPC into still higher gear of performance as demonstrated in the results during the first quarter of year 2012-13 as compared with the corresponding quarter of the year 2011-12. Some of the highlights are:
    • Commissioned 2,160 MW capacity (NTPC Group).
    • Generation growth has been 7.80 per cent as against all India growth of 6.40 per cent.
    • Total revenue increased by 11 per cent to ` 16,845 crore.
    • Profit After Tax increased by 20 per cent to ` 2,499 crore.
    • Capex increased by 83 per cent to ` 3,978 crore.
During the year 2012-13, NTPC Group has declared 2,320 MW capacity on commercial operation.
Being primarily driven by domestic demand and with a very large segment of its huge population having economic aspirations and dynamism, the Indian economy stands on firm foundations. This translates into a strong growth outlook for the power sector. It is envisaged that for 8 per cent GDP growth, India will need power generation capacity of 778 GW by 2032. The target growth of 8.2 per cent over the Twelfth Plan period for “strong inclusive growth” envisaged by the Government of India would require commensurate growth in the power sector. Power being one of the prime movers of economic growth, the Government has been giving it high priority.
NTPC maintains close interface with all stakeholders, continuously scans the business environment and proactively engages in policy advocacy. Some of the key concerns which have emerged during interactions with stakeholders are:
    • Perception of slow capacity addition in the sector.
    • Inadequate fuel supply.
    • Financial status of the state utilities.
    • Tariff revisions and distribution reforms.
    • Delay in land acquisition and environmental clearances.
NTPC has taken several steps to overcome these challenges which include:
    • Bulk tendering to step up capacity addition. This has also helped in enhancing the capability of equipment manufacturing in the country through induction of leading global manufacturers to set up manufacturing units in India along with their domestic JV partners.
    • Pre qualifications of vendors to reduce the time taken in award of work.
    • Induction of more vendors.
    • Direct import of coal, saving 15 to 23 per cent by way of price.
    • Initiative of importing low GCV coal for increasing the blending ratio and optimizing cost of generation.
    • Development of own mines.
    • Work in progress for transport of coal to Farakka through inland waterways, a pioneering initiative of your Company being cited as a model for other sectors. Initiatives being taken to transport coal to Barh and Bongaigaon projects also through waterways.
    • Incentives to customers for prompt payment.
    • Optimizing plant layouts and continuous improvement in the design of various components of projects with sharper focus on quality assurance.
    • Constant interaction with contractors to resolve contractual issues expeditiously and putting back on fast track over 8,000 MW capacity.
    • Several measures to enhance employee motivation and productivity while reducing employee cost per MW of power generated.
NTPC plans to add 14,038 MW capacity during the Twelfth Plan period and maintain its position as the largest power generator in the country.
The planned capacity growth is firmly on course as :
    • All the clearances and approvals have been obtained.
    • Fuel for all the projects has been tied up, including that from captive mines.
    • Financial resources are assured as your Company’s internal accruals are sufficient to finance equity portion and its ‘Most Favoured Borrower’ status enables it to raise debts at competitive rates. The weighted average cost of borrowings of your Company was 7.76 per cent during 2011-12 and 7.72 per cent during the first quarter of 2012-13.
    • Your Company has already tied up domestic loans of ` 57,229 crore, out of which about ` 17,000 crore is undrawn.
    • Your Company’s domestic bond raising capacity is more than ` 50,000 crore.
    • Your Company has upgraded its medium term note (MTN) programme to USD 2 billion.
In view of its growth plans, NTPC follows a prudent policy of balancing dividend pay-out with the requirement of deployment of internal accruals into its growth plans.

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