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1QFY12 results
NHPC reported 3% YoY increase in pre-exceptional profit in 1QFY12 while
the generation increased by 10.5% YoY. However, the reported profit
was up 47% YoY and included Rs2.4bn of exceptional gains. NHPC is
targeting Rs53bn capex and commissioning of 598MW new capacity in
FY12 as compared to 1.2GW target in the beginning of the year. We do
not see any meaningful upside from current levels for the stock. Maintain
Underperform.
3% increase in adjusted profit
NHPC reported 3% increase in adjusted net profit in 1QFY12. The reported
net profit at Rs7.9bn was up 47% YoY and included exceptional items totalling
Rs2.4bn (prior period sales: +Rs2.75bn; interest on tariff arrears: +Rs890m;
income from transfer of Subansiri Middle: +Rs689m and exceptional expenses
of Rs2bn related to water cess in the state of J&K).
10.5% YoY increase in generation
NHPC generated 6.3bn kWh in 1Q – an increase of 10.5% YoY. The plant
availability factor (PAF) for the first four months in FY12 has been 92% as
compared to 80% in the corresponding period last year. Incentives increased
by 37% YoY in 1Q of which 70% of the increase came from the “secondary
energy”.
Capacity addition would be lower than previous target of 1.2GW
NHPC started the year by targeting to add 1.2GW in FY12 even though it had
signed MoU for 560MW with the government of India. NHPC is now confident
to commission Chutak (44MW), Uri II (240MW) and Chamera III (231MW)
power projects in FY12. The company is also targeting to add Nimoo Bazgo
(45MW) and one unit each of Parbati II and Teesta Low Dam Stage III during
the year. Our estimates factor in 560MW capacity commissioned in FY12 and
another 812MW in FY13.
Maintain Underperform
NHPC has underperformed the market by 15% in past year. We have built
delays into the commissioning schedule of the expansion projects, but cannot
rule out further holdups given the nature of the business. The company
commissioned only 120MW of capacity in FY11, as against its 831MW target
and it is now very likely that it will miss its 1.2GW target for FY12. We do not
see any meaningful upside from the current 16x FY12 earnings and 1.1x PB,
with 7.4% ROE. We maintain our Underperform call.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
1QFY12 results
NHPC reported 3% YoY increase in pre-exceptional profit in 1QFY12 while
the generation increased by 10.5% YoY. However, the reported profit
was up 47% YoY and included Rs2.4bn of exceptional gains. NHPC is
targeting Rs53bn capex and commissioning of 598MW new capacity in
FY12 as compared to 1.2GW target in the beginning of the year. We do
not see any meaningful upside from current levels for the stock. Maintain
Underperform.
3% increase in adjusted profit
NHPC reported 3% increase in adjusted net profit in 1QFY12. The reported
net profit at Rs7.9bn was up 47% YoY and included exceptional items totalling
Rs2.4bn (prior period sales: +Rs2.75bn; interest on tariff arrears: +Rs890m;
income from transfer of Subansiri Middle: +Rs689m and exceptional expenses
of Rs2bn related to water cess in the state of J&K).
10.5% YoY increase in generation
NHPC generated 6.3bn kWh in 1Q – an increase of 10.5% YoY. The plant
availability factor (PAF) for the first four months in FY12 has been 92% as
compared to 80% in the corresponding period last year. Incentives increased
by 37% YoY in 1Q of which 70% of the increase came from the “secondary
energy”.
Capacity addition would be lower than previous target of 1.2GW
NHPC started the year by targeting to add 1.2GW in FY12 even though it had
signed MoU for 560MW with the government of India. NHPC is now confident
to commission Chutak (44MW), Uri II (240MW) and Chamera III (231MW)
power projects in FY12. The company is also targeting to add Nimoo Bazgo
(45MW) and one unit each of Parbati II and Teesta Low Dam Stage III during
the year. Our estimates factor in 560MW capacity commissioned in FY12 and
another 812MW in FY13.
Maintain Underperform
NHPC has underperformed the market by 15% in past year. We have built
delays into the commissioning schedule of the expansion projects, but cannot
rule out further holdups given the nature of the business. The company
commissioned only 120MW of capacity in FY11, as against its 831MW target
and it is now very likely that it will miss its 1.2GW target for FY12. We do not
see any meaningful upside from the current 16x FY12 earnings and 1.1x PB,
with 7.4% ROE. We maintain our Underperform call.
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