NTPC will report its third-quarter earnings on Wednesday and the state-owned power company is likely to see a profit growth of 10 percent in the quarter gone by.
- Analysts are looking at a revenue growth of around 7 percent, margins are expected to expand a tad bit by 200 basis points (bps) and that is what will drive the profit growth by 10 percent in this quarter.
- In Q3, there has been no major capacity addition and that is why the regulated equity on a quarter-on-quarter (QoQ) basis might remain stable. However, the generation has gone up by about 3-5 percent.
- As far as margins and bottomline is concerned, the plant load factor (PLF) incentive income is expected to move up and secondly, the under-recoveries that have been seen on account of maintenance and shutdown of some of the plants is expected to go away and that is what is expected to aid the margins and profitability.