NHPC | Q3FY15 | Net profit hit by borrowing and admin cost for stuck projects | We dont have any formal rating on the stock. :: IndiaNivesh

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NHPC reported Q3FY15 below our expectation. Reported PAT stood at 1.79 bn (decreased by 31% YoY and 74% QoQ); however adjusted PAT (excluding borrowing and admin cost) stood at Rs 2.8 bn vs. our expectation of Rs 2.30 bn. Revenue increased by 4% YoY (down 44% QoQ) to Rs. 11.66 bn, lower than our expectation of Rs. 12.22 bn may attribute this to lower than expected volume coupled with lower realization. Reported EBITDA margin contracted 847 bps YoY to 48.9% due to higher other expenditure. Due to stoppage of work in its projects Subansiri lower and TLDP 4, the company has included borrowing expenses of Rs. 1.02 bn and admin and other expenses of Rs 374 mn in profit and loss account of Q3FY15 as per instruction of ICAI (The Institute of Chartered Accountants of India). According to management, construction activities at Subansiri are expected to begin shortly as the matter is being pursued at the level of Government of India. Net profit hit by borrowing and admin cost for stuck projects Following the lower EBITDA and higher interest expenses PAT came down by 31% YoY and stood at Rs. 1.79 bn. However, adjusted EBITDA and PAT (excluding borrowing expenses of Rs. 1.02 bn and admin and other expenses of Rs. 374 for Subansiri lower and TLDP 4) stood at Rs. 7.11 bn and Rs. 2.87 bn respectively. Company has added 807 MW during FY14 while during H1FY15 balance one unit of 130 MW of Parbati III has been commissioned.

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