11 Jun , 2021 By : Kanchan Joshi
The March quarter earnings performance of public sector power company NHPC Ltd would have been disappointing had it not been for higher other income.
On a standalone basis, the company's hydropower generation declined 25% year-on-year (y-o-y) at 2,946MUs for Q4FY21 due to low water flow at most of its plants. However, a higher late payment surcharge of Rs330 crore boosted its other income component by 13% y-o-y, which translated into a 6% y-o-y increase in Q4 profit after tax at Rs400 crore.
It should be noted that the March quarter’s performance took NHPC's FY21 adjusted profit to Rs3200 crore, which according to ICICI Securities Ltd analysts is a significant achievement, considering the company had provided Rs190 crore rebate on fixed costs in Q1FY21.
On the flip side, higher receivables remain a pain point for the company. At the end of FY21, NHPC’s receivables reduced to Rs3200 crore, a 16?cline compared to FY20. Analysts say, this should be attributed to delayed receipts relating to the Aatmanirbhar scheme and pending payments from states.
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