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

NTPC LIMITED

ARUP ROY CHOUDHURY,CMD

RESULTS FOR Q3 FY 2012-13

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.

CHAIRMAN’S STATEMENT EXCERPTS (LAST YEAR)

36th ANNUAL GENERAL MEETING 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.  *  *  *  E  N  D  *  *  *

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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