NHPC = RESULTS = FOR FY2011 vs FY 2010 = LACK LUSTRE RESULT

NHPC Limited

NSE Symbol     NHPC

NHPC LTD  has declared lack lustre results for FY 2011.

Net Sales has come down to Rs.4964.99 cr in FY 11 from Rs.5114.26 cr in FY 10.

Total Expenditure has also come down to Rs.2022.63 cr in FY 11 from Rs.2381.08 cr in FY 10.

Consequently, Profit from Operations has gone up to Rs.   3121.02 cr in FY 11 from Rs.2846.24 cr in FY 10.

Profit before tax has gone up further to Rs.3257.23 cr in FY 11 from Rs.2754.17 cr in FY 10.

Net Profit has gone up to Rs.2462.77 cr in FY 11 – from Rs.2277.56 cr in FY 10.

Consolidated Net Profit has gone up to Rs.2316.16 cr in FY 11 from Rs.2175.56 cr in FY 10.

Note : Financial highlights of the results for the year ended March 31, 2010 are as under: (1) Net Profit: The Profit After Tax of the Company for the year ending March 31, 2010 is Rs. 2090.50 crore as against 1075.22 crore during 2008-09.(2) Sales: The sales turnover for the year 2009-10 was Rs. 4218.90 crore as against 2671.85 crore during 2008-09. The increase in sales and profit is mainly due to finalization/ revision of tariff in respect of projects for earlier years and new guidelines by CERC.

See NHPC’s announcements to NSE below on this item pl.

The Paid-up Equity of NHPC is a huge Rs.        12300.74 cr – which makes the basic EPS to move up from a mere 1.84 to in FY 10 to 1.88 in FY11. NHPC will have to implement a large number of projects – for producing a net profit equal to or more than its Equity and thereby more decent EPS and reward investors.

RESULTS TABLE :

NHPC	FY 11 CS	FY 10 CS
Net Sales	496499	511426
Other Operating Income	17866	11306
Employees Cost	76965	57626
Depreciation	116655	128273
Other Expenditure	8643	52209
Total Expenditure	202263	238108
Profit from Operations	312102	284624
Other Income	80709	64730
Profit before Int & EI	392811	349354
Interest	67088	73937
Profit after Interest but before EI	325723	275417
Profit before tax	325723	275417
Tax Expense	79446	47661
Net Profit	246277	227756
Minority Interest	14661	10200
Consolidated Net Profit	231616	217556
Face Value (in Rs.)	10	10
Paid-up Equity	1230074	1230074
Reserves	1508729	1280649
Basic EPS	1.88	1.84
Public Shareholding (%)	13.64	13.64

ANNOUNCEMENTS TO NSE

24-05-2011          Nhpc Limited has signed a Memorandum of Understanding (MoU) with Russia's largest power generating Company M/s. JSC RusHydro on May 23, 2011 for Cooperation on case-to-case basis in Hydropower projects in India and other countries.

14-03-2011          Nhpc Limited has signed an Agreement with Mangdechhu Hydroelectric Project Authority, an Authority set up by Royal Govt. of Bhutan, for providing engineering & design consultancy services for Mangdechhu Hydroelectric Project (720 MW) in Bhutan.

21-12-2010          a Promoters' Agreement has been signed on December 21, 2010 amongst NHPC Limited, Jammu & Kashmir State Power Development Corporation Limited and PTC India Limited for formation of a Joint Venture Company for execution of Pakal Dul and other Hydro-Electric Projects aggregating to Installed capacity of about 2100 MW in the Chenab River Basin of Jammu & Kashmir.          -

26-07-2010          SEWA-II H.E. Project (120 MW) has been declared under commercial operation with effect from 0000 hrs of July 24, 2010, consequent upon successful trial run of balance Unit-II (40 MW) of the Project.

02-07-2010          NHPC has been designated as executing agency for 1200 MW Tamanthi and 642 MW Shwezaye Hydropower projects in Myanmar by Ministry of Power vide letter no. 07/02/94-BBMB dated June 25, 2010.

02-07-2010          Unit - III of SEWA - II HE Project has been declared under commercial operation w.e.f. 0000 hrs of July 02, 2010.

01-07-2010          Unit-I of SEWA-II HE Project has been declared under commercial operation w.e.f. 0000 hrs of June 29, 2010 as per the allocation letter No. NRPC/SE(O) /Allocations/2010-11 dtd June 29, 2010 issued by Member Secretary, NRPC to beneficiaries & other utilities.

25-05-2010          Financial highlights of the results for the year ended March 31, 2010 are as under: (1) Net Profit: The Profit After Tax of the Company for the year ending March 31, 2010 is Rs. 2090.50 crore as against 1075.22 crore during 2008-09.(2) Sales: The sales turnover for the year 2009-10 was Rs. 4218.90 crore as against 2671.85 crore during 2008-09. The increase in sales and profit is mainly due to finalization/ revision of tariff in respect of projects for earlier years and new guidelines by CERC.

25-05-2010          Nhpc Limited has informed the Exchange that the Board of Directors at its Meeting held on May 25, 2010 have recommended a dividend of Re. 0.55 per share for consideration of shareholders in their Annual General Meeting.          -

28-04-2010          Nhpc Limited has informed the Exchange that " MoU has been signed on April 28, 2010 amongst NHPC Limited, Government of Manipur and SJVN Limited for formation of a Joint Venture Company for implementation of 1500 MW Tipaimukh Hydroelectric (Multipurpose) Project in Manipur. NHPC Limited, SJVN Limited and Government of Manipur shall have a share holding of 69%, 26% and 5% respectively."          -

27-04-2010          Nhpc Limited has informed the Exchange that : "The Company will publish its Audited Annual Financial Results within 60 days of the Close of financial year i.e. on or before 30th May, 2010". -

23-03-2010          Nhpc Limited has informed the Exchange that the Company has, on March 23, 2010 signed an Agreement with Department of Energy, Royal Govt. of Bhutan for providing engineering & consultancy services relating to pre-construction activities of Mangdechhu Hydroelectric Project (720 MW) in Bhutan at a total cost of Rs.11.67 Crore.           -

22-03-2010          Nhpc Limited has informed the Exchange that M/s Standard & Poor's has revised outlook on NHPC Limited to stable from Negative following sovereign rating action.       -

30-01-2010          NHPC Limited has informed the Exchange vide notes to Accounts in the Un-Audited Financial Results for the quarter ended December 31, 2009 (taken on record by the Board of Directors of the Company at its meeting held on January 29, 2010) that: out of the Share Proceeds of Rs. 603,855 lacs, including share premium, a sum of Rs. 201,285 lacs, being the share of Government of India, has been paid to the Ministry of Power. Out of the balance, an amount of Rs. 42,600 lacs and Rs. 5000 lacs has been utilised for recoupment of capital expenditure already incurred from internal accruals on projects specified for utilisation and to meet IPO expenditure provisionally respectively. Balance of Rs. 354,970 lacs has been invested in Term Deposits in accordance with the extant policy of the Company. -

08-01-2010          Nhpc Limited has informed the Exchange that the Company has signed Agreement for taking up Additional Investigations and Preparation of Updated Detailed Project Reports for 1200 MW Tamanthi HE Project and 642 MW Shwezaya HE Project it Myanmar, as consultancy assignments, with Ministry of External Affairs (MEA), Government of India on January 08, 2010 for Rs.20 Crore each.       -

31-12-2009          Nhpc Limited has informed the Exchange that the Agreement for the preparation of DPRs for Chamkharchhu-I (670 MW) and Kuri-Gongri (1800 MW) HE Projects in Bhutan with a cost of Rs.22 Crore and Rs.27 Crore respectively were signed on December 22, 2009, between NHPC and Royal Government of Bhutan at New Delhi.

* * *   E N D  * * *

NHPC -FY10 RESULTS - GOOD MARGINS - EQUITY HIGH - GOOD PROJECTS ON HAND

N H P C

FY 10 RESULTS ANALYSIS

The Results for FY 10 – both consolidated and non-consolidated of NHPC Ltd, which has a pubic shareholding of 13.64% as on 31.03.2010 are given below.

The earlier results are not available for comparison. The non-consolidated basic EPS is 1.76 on Face value of Rs.10, while the consolidated Basic EPS is Rs.1.84.

On a sales of Rs.4219 crores, the net profit of Rs.2091 crores is quite a good margin – but this has been helped by some retrospective rate revision, which contributed Rs.816 crores to the profit. Even so, profit margin appears to be quite good. But, Equity of 12,300 crores is too high already. Hence, unless sales increase several times, profits may not cross face value.

Current price of Rs.29/- is of course quite reasonable considering the steady revenue stream. It is discounted 16.48 times in PE ratio.

NHPC has lot of expansion schemes and  cash reserves also which it wants to invest in mutual funds etc. Long term investors may hold on to this share.

NHPC must find sources other than equity for expansions – since, equity is already quite bloated.

NHPC NON-CONSOLIDATED	FY 10 (lakhs)
Net Sales	421890
Other OPTG Income	11308
Employees Cost	52984
Depreciation	103325
Other Expenditure	46984
Total Expenditure	203293
O P T	229905
Other Income	56011
Interest	45708
Tax Expense	31158
Net Profit	209050
Dividend (%)	5.5
Face Value (in Rs.)	10
Paid-up Equity	1230074
Reserves	1097245
Basic EPS	1.76
Public Shareholding (%)	13.64

N H P C - CONSOLIDATED	FY10(lakhs)
Net Sales	511426
Other OPTG Income	11306
Employees Cost	57626
Depreciation	128273
Other Expenditure	52209
Total Expenditure	238108
O P T	284624
Other Income	64730
Interest	73937
Tax Expense	47661
Net Profit	227756
Consol.Net Profit	217556
Dividend (%)	-
Face Value (in Rs.)	10
Paid-up Equity	1230074
Reserves	1280649
Basic EPS	1.84
Public Shareholding (%)	13.64

NEWS ABOUT NHPC

NHPC posted a 94.43 % rise in net profit at Rs 2,090.50 crore for 2009-10, helped by a one-time payment of arrears from revised tariffs. Last year, NHPC had a net profit of Rs 1,075.22 crore.

“Tariffs for Dulhasti (J&K), Chamera (Himachal) and Teesta-V (West Bengal) projects were finalised by the electricity regulator CERC (Central Electricity Regulatory Commission), which contributed nearly Rs 816 crore to our profit. However, this is just a one-time entry,” NHPC Finance Director ABL Srivastava told .

NHPC may invest its surplus funds in mutual funds. NHPC has invested in long-term securities such as PSU bonds and fixed deposit receipts.

“We are exploring the possibility of investing surplus cash in mutual funds. We have to see whether it is worthy or not,” company said. The government has allowed profit-making central public sector enterprises (CPSEs) to invest 30 per cent of their money in public sector mutual funds like LIC and SBI.

NHPC on Tuesday said it aims to borrow Rs 3,000 crore in the current fiscal year to March, almost unchanged from a year earlier, its director of finance A.B.L. Srivastava said.

Tipaimukh project :

The 1,500MW Tipaimukh Dam Project in Manipur is going ahead, despite apprehensions from neighbouring Bangladesh which fears that rivers on its territory could be adversely impacted by the undertaking.

NHPC and SJVN signed a memorandum of understanding (MoU) with the Manipur government for the establishment of a joint venture company to execute the project. However, the details of the project cost and time line are yet unclear.

The proposed project, which is to be a multi-purpose hydro power facility with flood management functions, is expected to be located on the Barak river in the Churachandpur district of Manipur. Once implemented, it would be amongst the largest hydro-power projects in the country.

While NHPC will have an equity interest of 69 per cent, SJVN and the state government will hold 26 per cent and 5 per cent respectively.

Subsequent to the formation of the joint-venture firm for undertaking the project, a detailed project report (DPR) would be prepared, which could bring clarity to the matters under contention.

ANNOUNCEMENTS TO THE EXCHANGE

25-05-2010          Nhpc Limited has informed the Exchange that the Financial highlights of the results for the year ended March 31, 2010 are as under: (1) Net Profit: The Profit After Tax of the Company for the year ending March 31, 2010 is Rs. 2090.50 crore as against 1075.22 crore during 2008-09.(2) Sales: The sales turnover for the year 2009-10 was Rs. 4218.90 crore as against 2671.85 crore during 2008-09. The increase in sales and profit is mainly due to finalization/ revision of tariff in respect of projects for earlier years and new guidelines by CERC.    -

25-05-2010          Nhpc Limited has informed the Exchange that the Board of Directors at its Meeting held on May 25, 2010 have recommended a dividend of Re. 0.55 per share for consideration of shareholders in their Annual General Meeting.    -

28-04-2010          Nhpc Limited has informed the Exchange that " MoU has been signed on April 28, 2010 amongst NHPC Limited, Government of Manipur and SJVN Limited for formation of a Joint Venture Company for implementation of 1500 MW Tipaimukh Hydroelectric (Multipurpose) Project in Manipur. NHPC Limited, SJVN Limited and Government of Manipur shall have a share holding of 69%, 26% and 5% respectively."        -

23-03-2010          Nhpc Limited has informed the Exchange that the Company has, on March 23, 2010 signed an Agreement with Department of Energy, Royal Govt. of Bhutan for providing engineering & consultancy services relating to pre-construction activities of Mangdechhu Hydroelectric Project (720 MW) in Bhutan at a total cost of Rs.11.67 Crore. -

22-03-2010          Nhpc Limited has informed the Exchange that M/s Standard & Poor's has revised outlook on NHPC Limited to stable from Negative following sovereign rating action.           -

30-01-2010          NHPC Limited has informed the Exchange vide notes to Accounts in the Un-Audited Financial Results for the quarter ended December 31, 2009 (taken on record by the Board of Directors of the Company at its meeting held on January 29, 2010) that: out of the Share Proceeds of Rs. 603,855 lacs, including share premium, a sum of Rs. 201,285 lacs, being the share of Government of India, has been paid to the Ministry of Power. Out of the balance, an amount of Rs. 42,600 lacs and Rs. 5000 lacs has been utilised for recoupment of capital expenditure already incurred from internal accruals on projects specified for utilisation and to meet IPO expenditure provisionally respectively. Balance of Rs. 354,970 lacs has been invested in Term Deposits in accordance with the extant policy of the Company.

08-01-2010          Nhpc Limited has informed the Exchange that the Company has signed Agreement for taking up Additional Investigations and Preparation of Updated Detailed Project Reports for 1200 MW Tamanthi HE Project and 642 MW Shwezaya HE Project it Myanmar, as consultancy assignments, with Ministry of External Affairs (MEA), Government of India on January 08, 2010 for Rs.20 Crore each.

31-12-2009          Nhpc Limited has informed the Exchange that the Agreement for the preparation of DPRs for Chamkharchhu-I (670 MW) and Kuri-Gongri (1800 MW) HE Projects in Bhutan with a cost of Rs.22 Crore and Rs.27 Crore respectively were signed on December 22, 2009, between NHPC and Royal Government of Bhutan at New Delhi.

23-10-2009          Nhpc Limited has informed the Exchange that Registrar of Companies, Shilong, has approved the incorporation of M/s. Loktak Downstream Hydroelectric Corporation Limited, a Joint Venture between NHPC Limited and Govt. of Manipur. NHPC will be the major shareholder of 74%. -

01-10-2009          Nhpc Limited has informed the Exchange that M/s Standard & Poor's has reaffirmed credit rating of NHPC Limited as 'BBB-' and removed from credit watch negative; outlook negative. The details of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).