State-owned hydropower company NHPC saw a 4.95% decline in its share price, trading at ₹80.34 on the BSE following its Q2 FY25 financial results. The company reported a significant 37% reduction in its consolidated net profit for Q2, amounting to ₹1,069.28 crore, down from ₹1,693.26 crore in Q2 FY24. This decline was primarily due to exceptional expenses incurred during the quarter.
Key Financial Highlights for Q2 FY25:
- Total Income: Increased to ₹3,402.09 crore from ₹3,113.82 crore (YoY growth of 9.25%).
- Total Expenses: Rose by 16.3% to ₹1,831.08 crore from ₹1,573.54 crore.
- Revenue from Operations: Rose 4.11% YoY to ₹3,051.93 crore.
- Profit Before Tax: ₹1,571.36 crore, up 2.01% from ₹1,540.28 crore in Q2 FY24.
- Operating Margin: Decreased significantly to 1.36% from 51.95% in Q2 FY24.
- Net Profit Margin: Stood at 35.04%, down from 57.77% in Q2 FY24.
Vivad se Vishwas II Scheme Payments:
NHPC made payments under the government’s “Vivad se Vishwas II” scheme:
- Q2 Settlements: ₹203.12 crore
- H1 FY25 Settlements: ₹350.03 crore
Technical Analysis & Key Levels:
- Share Price: ₹82.11 (-2.86%) as of 12:00 PM, 8th November.
- 52-Week Range: High of ₹118.40, Low of ₹50.45
- Moving Averages: The stock is trading above its 10-day SMA but below its 5, 20, 50, 100, and 300-day SMAs, with key support at ₹81.88 and resistance around ₹85.46.
Comparative Holding Data:
- Mutual Fund Holdings: Decreased from 5.22% in June to 4.99% in September.
- Foreign Institutional Investors (FII): Increased from 8.96% to 9.38%.
Competitor Insights:
- NHPC’s competitors, such as JSW Energy and Torrent Power, also showed mixed performance. The broader market, including Nifty and Sensex, was down by -0.24%.
In summary, NHPC’s financial performance has faced pressure due to increased expenses, affecting both margins and profit. Investors might wait for short-term trend confirmation before considering reversals in NHPC stock. The stock’s year-ahead forecast indicates a potential upside of 18.13%, targeting a price of ₹97.00.
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