NTPC Green Energy Q4 Results: Other income aids net profit, margins expand to 90%

Shares of state-run NTPC Green Energy, the demerged and newly listed subsidiary of NTPC Ltd. surged as much as 4% on Wednesday, May 21, in reaction to its March quarter results. Despite the upmove, the stock remains below its IPO price.

For the March quarter, NTPC Green Energy's net profit tripled from last year to ₹233 crore from ₹81 crore last year. The surge in profitability was also aided by a higher other income, which also nearly tripled on a year-on-year basis to ₹129.2 crore from ₹44.9 crore last year.

Revenue for the quarter went up by 22.5% to ₹622.3 crore from ₹508 crore during the same quarter last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 28.3% to ₹560.4 crore from ₹436.7 crore during the year-ago quarter.

EBITDA margin expanded by 400 basis points from last year to 90% from 86% last year.

At the end of the December quarter, NTPC Green Energy had 3.3 GW in installed capacity, with 5.9 GW capacity under construction. Capacity worth 10.8 is under bids won and bilateral tie-ups.

NTPC Green Energy intends to commission 40 GW of capacity by financial year financial year 2032 to take the total renewable capacity to 60 GW.

The company is also anticipating 14 GW of pumped hydro capacity to also be commissioned over the next six to nine years.

NTPC Green's promoter, NTPC still owns a 89% stake in its subsidiary at the end of the March quarter.

Among public shareholders, Nippon India MF has a 1.19% stake, Life Insurance Corporation of India (LIC) has a 1.2% stake, Foreign Portfolio Institutions have a 2% stake, while nearly 14 lakh small shareholders, or those with an authorised share capital of up to ₹2 lakh, have a 3.6% stake in the company at the end of the March quarter.

Shares of NTPC Green saw a brief spike after the results were reported, currently trading 1.8% higher at ₹104.9. The stock is trading below its IPO price of ₹108 and has seen a significant correction from its post-listing high of ₹155.