NTPC shares up ahead of Q1 result; here’s what to expect

Shares of NTPC inched higher in Friday’s trade ahead of the company’s financial result for the quarter ended June 30 later in the day.

The scrip traded 0.23 per cent up at Rs 87.40 at around 9.23 am (IST), while the benchmark BSE Sensex was up 0.44 per cent at 38,479 at around the same time.

Brokerage firm Edelweiss Securities sees a 50.10 per cent year-on-year (YoY) dip in profit after tax on an 11.80 per cent YoY fall in revenue.

“NTPC revenues are expected to decline on the back of volume decline (down 13 per cent YoY). EBITDA is expected to be down 26 per cent YoY,” Edelweiss said.

On the other hand, a projection by Dolat Capital shows a 21.80 per cent YoY fall in net profit of NTPC in Q1FY21. However, the brokerage firm expects sales and EBITDA to grow 7 per cent and 11.30 per cent, respectively, on YoY basis.

“We expect NTPC to see a 7 per cent growth mainly led by capacity addition of 4GW done in FY20. Our PAT estimates include the impact of Rs 1,360 crore of rebate which we expect in Q1,” Dolat Capital said.