NTPC Sees Weak Performance In FY13

India's largest power producer, NTPC has announced it fourth quarter results for the 2013 fiscal on May 10. The numbers disappointed the market and the stock closed the day with 0.83% losses.

The company has posted revenues of Rs 69376 crore for FY2013 against Rs 65893 crore in FY2012, registering a marginal growth of 5.29% growth in consolidated terms. In Q4FY13, it saw revenues of Rs 17349 crore, with growth of 6.04% on a standalone basis. Sequentially, the company posted 9.75% growth in revenues from that seen in Q3FY13.

NTPC's operating expenses have increased by a marginal 1.45% to Rs 51194 crore in FY2013 on a consolidated basis. This was despite a 23.47% rise in its Other Expenses, which were at Rs 4815 crore. However, the employee expenses in Q4FY2013 increased by almost 42% to Rs 981 crore on a standalone basis.

During FY2013, the company’s Other Income increased by 7.28% to Rs 3164 crore against that in FY2012. The company's finance cost increased to Rs 2480 crore in FY2013, with a 16.20% growth from that in the previous fiscal.

NTPC’s net profit has increased to Rs 12586 crore in FY2013 from Rs 9815 crore in FY2012, a 28.24% growth YoY. This was only due to the Income under Exceptional Items worth Rs 1568 crore during FY2013. If we exclude this figure, the company has seen a mere 12.26% growth in its net profits for the financial year as a whole. We suggest that investors avoid any fresh exposure in the stock till the business environment improves for NTPC.