NHPC Limited- Q2 Results

Introduction

NHPC, previously known as the National Hydroelectric Power Corporation, was established in 1975 under the Companies Act as a private limited company. Today, it is a public sector hydropower company that also deals with other renewable energy sources like tidal, wind, solar, and geothermal. Moreover, NHPC Ltd. is a Mini Ratna Cat-1 Enterprise of the Indian government and is ranked among the top ten Indian companies in terms of investment base.

NHPC Ltd. released its financial results for Q2 FY 2023-24 on November 6th after market hours. The company reported a marginal increase in its net profit year-on-year, while the total income dipped YoY.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Consolidated)

• NHPC Ltd. reported a net profit of ₹1,693.26 Cr during Q2 FY24, compared to ₹1,685.81 Cr reported in the same period last year.
• The Mini Ratna power company registered a total income of ₹3,113.82 Cr in the period under review, down from ₹3,477.93 Cr recorded during the corresponding period last year.
• The company’s operational revenue stood at ₹2,931.26 Cr during the second quarter of the fiscal year, as against ₹3,314.59 Cr during Q2 FY 2022-23.
• The Current Ratio of the company was 1.24 for the period ending on September 30, 2023, versus 1.32 during Q1 FY24 and 1.34 during Q2 FY23.

As per an exchange filing, NHPC Limited clocked a consolidated net profit of ₹1,693.26 Cr during the second quarter of the fiscal year, up from ₹1,685.81 Cr reported during Q2 FY23. For H1 FY24, the company reported a net profit of ₹2,788.64 Cr, while it recorded a net profit of ₹2,739.57 Cr during H1 FY23.

The company’s operational revenue for the quarter under review stood at ₹2,931.26 Cr, as against ₹3,314.59 Cr in the same period last year. Sequentially, the operational revenue was up from ₹2,757.26 Cr. For the first half of the fiscal year, the revenue from operations stood at ₹5,688.52 Cr, down from ₹5,995.87 Cr during H1 FY23.

The total income for the quarter declined to ₹3,113.82 Cr from ₹3,477.93 Cr reported in the corresponding period last year. For the first half of the fiscal year, the company reported a total income of ₹6,124.04 Cr compared to ₹6,364.88 Cr reported during H1 FY23.

Also Read: NHPC Share Price

Management Commentary

Key Announcements

• The company’s board approved the Joint Venture Agreement to form a Joint Venture Company between NHPC and the Andhra Pradesh Power Generation Corporation Limited (APGENCO).

NHPC Limited: H1 Consolidated Financial Performance (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹5,995.87 Cr	₹5,688.52 Cr
Total Income	₹6,364.88 Cr	₹6,124.04 Cr
Total Expenses	₹3,179.68 Cr	₹3,228.87 Cr
Profit Before Tax and Regulatory Deferral Account Balances	₹3,187.97 Cr	₹2,895.17 Cr
Profit for the Period	₹2,739.57 Cr	₹2,788.64 Cr
Total Comprehensive Income for the Period	₹2,742.22 Cr	₹2,822.06 Cr

NHPC Limited: Consolidated Financial Performance (QoQ)

Particulars	Q2 FY 2022-23	Q2 FY 2023-24
Revenue from Operations	₹2,757.26 Cr	₹2,931.26  Cr
Total Income	₹3,010.22 Cr	₹3,113.82 Cr
Total Expenses	₹1,655.33 Cr	₹1,573.54 Cr
Profit Before Tax and Regulatory Deferral Account Balances	₹1,354.89 Cr	₹1,540.28 Cr
Profit for the Period	₹1,095.38 Cr	₹1,693.26 Cr
Total Comprehensive Income for the Period	₹1,119.39 Cr	₹1,702.67 Cr

NHPC Limited: H1 Standalone Financial Performance (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹5,326.71 Cr	₹5,056.35 Cr
Total Income	₹5,658.42 Cr	₹5,464.46 Cr
Total Expenses	₹2,908.12 Cr	₹3,039.95 Cr
Profit Before Tax and Movements in Regulatory Deferral Account Balances	₹2,750.30 Cr	₹2,424.51 Cr
Profit for the Period	₹2,482.66 Cr	₹2,500.05 Cr
Total Comprehensive Income for the Period	₹2,486.25 Cr	₹2,534.29 Cr

NHPC Limited: Standalone Financial Performance (QoQ)

Particulars	Q2 FY 2022-23	Q2 FY 2023-24
Revenue from Operations	₹2,570.96 Cr	₹2,485.39 Cr
Total Income	₹2,849.95 Cr	₹2,614.51 Cr
Total Expenses	₹1,575.41 Cr	₹1,464.54 Cr
Profit Before Tax and Movements in Regulatory Deferral Account Balances	₹1,274.54 Cr	₹1,149.97 Cr
Profit for the Period	₹1,052.94 Cr	₹1,447.11 Cr
Total Comprehensive Income for the Period	₹1,077.35 Cr	₹1,456.94 Cr

NHPC Limited: Statement of Consolidated Assets and Liabilities

Particulars	As of September 30, 2023
Total Non-current Assets	₹71,267.01 Cr
Total Current Assets	₹11,807.29 Cr
Total Assets	₹89,802.47 Cr
Total Equity	₹44,078.20 Cr
Total Non-current Liabilities	₹34,764.74 Cr
Total Current Liabilities	₹9,547.03 Cr
Total Equity and Liabilities	₹89,802.47 Cr

Stock Performance

The financial results of NHPC Ltd. were announced on November 6th (Monday) after the market closed for the day. The following day, the company’s shares opened at ₹50.40 and, at 11 A.M., fell 0.46% to ₹50.16 apiece on BSE.

About the Company

Formerly known as the National Hydroelectric Power Corporation, NHPC, a public sector hydropower enterprise, was established in 1975. It was converted to a public limited company in 1986, and the Indian and state governments have a 74.51% share as a promoter of the company, while 25.49% is public shareholding. Moreover, NHPC is a Mini Ratna Cat-1 Enterprise of the Indian government and is primarily dedicated to the planning, development, and execution of an integrated network of hydroelectric projects in the country. That said, today, the company also deals with other RE sources like solar, wind, and tidal energy.

Sources:

https://www.nhpcindia.com/assests/pzi_public/gallery/16992867010.PDF