NTPC – Charging Ahead with Good Numbers

NTPC’s 4QFY08 Recurring PAT at Rs18.0bn was up 4% YoY. Reported PAT was down 23% YoY on account of exceptional foreign exchange fluctuation items of Rs4.7bn. The company does not expect similar items from FY09 on account of change in accounting.

NTPC’s FY08 Recurring PAT at Rs75.0bn up 12% YoY was 7% below CIR estimates of Rs80.6bn on account of ~ Rs6bn of extra coal costs in 4QFY08 after Coal India hiked prices by 10%. These costs will be made up in the tariffs next year as this is a pass through item.

FY08 gross generation at 200.9 bkwh up 6% YoY was below CIR estimates of 209bkwh on account of delay in capacity addition and gas supply shortages.

Out of the 22,430MW of capacity the company expects to add in the XIth plan, 1,740MW has been commissioned, 16,930MW is under construction and 3,760MW is yet to be ordered. For FY09, we expect the company to report an EPS of Rs 10.98.