NHPC Q2 results, shares fell by 5%, reported 37% decline in consolidated net profit

Shares of the state-owned hydropower company NHPC fell by 4.95%, trading at Rs 80.34 per share on the BSE after the company announced a decline in net profits for the second quarter of the financial year 2024-25 (Q2 FY25). NHPC reported a 37% drop in its consolidated net profit for the September quarter, which amounted to Rs 1,069.28 crore, a decrease from Rs 1,693.26 crore in the same period last year. This decline in profit was primarily attributed to exceptional expenses incurred during the quarter. 

Despite the profit drop, the company’s total income increased, rising to Rs 3,402.09 crore from Rs 3,113.82 crore, representing a 9.25% year-on-year growth. However, expenses also rose, increasing to Rs 1,831.08 crore from Rs 1,573.54 crore in the corresponding period of the previous fiscal year, reflecting an increase of 16.3%.

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Additionally, NHPC reported making payments under the government’s "Vivad se Vishwas II" scheme during the quarter and the first half of FY25. The company settled contractor claims amounting to Rs 203.12 crore for the quarter, and Rs 350.03 crore for the half-year ended September 30, 2024.

However, revenue from operations rose 4.11% year on year (YoY) to Rs 3,051.93 crore in the quarter ended 30 September 2024. Profit before the quarter's tax and regulatory deferral account balances was at Rs 1,571.36 crore, up 2.01% from Rs 1,540.28 crore posted in Q2 FY24.

In terms of margins, the operating margin for the PSU company decreased to 1.36% in Q2 FY25, down from 51.95% in Q2 FY24. The net profit margin stood at 35.04% in Q2 FY25, compared to 57.77% in the previous quarter. On a half-year basis, net profit declined by 24.97%, totaling Rs 1,937.57 crore, while revenue from operations increased by 4.11% to Rs 3,051.93 crore in H1 FY25 compared to H1 FY24.

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