Energy Giant NTPC To Announce Interim Dividend, Fixes Record Date, Q3 In Focus; How Earnings Will Be?

NTPC, an energy giant under public sector undertakings (PSUs), will be in focus on Monday for its Q3 results announcement and dividend recommendation. The Maharatna company has already declared a record date for the upcoming dividend. Regulated return, increased generation and capacity additions may benefit NTPC in Q3FY24.

NTPC Q3 Results Preview:

As per the regulatory filing, the company's board of directors are scheduled to meet on Monday, January 29, 2024, to, inter-alia, consider, approve and take on record the Un-audited Financial Results of the Company for the quarter and nine-month period ended December 31, 2023 after these results are reviewed by the Audit Committee of the Board.

For the third quarter of FY24, Elara Capital in its research note said, "NTPC is set to benefit from incremental renewables addition and the requirement to add incremental thermal capacity as peak shortages increase. Beyond these, NTPC is also investing in other clean energy areas (green hydrogen, carbon capture and utilization, etc.) that provide option value."

Elara's note added, "NTPC has accelerated coal-based addition targets and commissioned 3.3GW of renewable capacity with another 7.3GW under construction (and a pipeline of 10GW of renewable projects). Note that there is a limited presence of private-sector players seeking to add incremental coal-based power capacity."

Also, the brokerage's note said, "Generation for NTPC plants (excluding renewables) at parent level rose 15% YoY to 84BUs in Q3FY24. It commissioned 50MW of Dayapar Wind Energy Project in Q3FY24. We anticipate Q3E PAT to increase 10% YoY to INR 49bn."

That being said, Elara expects NTPC to report revenue of Rs 45,526.3 crore in Q3FY24, up by 11.4% QoQ and 9.9% YoY. While EBITDA is seen at Rs 416.153.5 crore, up by 53.3% QoQ and 22% YoY. Adjusted PAT is likely to come at Rs 4,916.8 crore, up by 26.6% QoQ and 9.8% YoY.

NTPC Dividend:

Further, its filing revealed that the Second Interim dividend on the equity share capital of the Company for the year 2023-24 may also be, inter-alia, considered in the same Meeting (January 29) of the Board of Directors.

For the second interim dividend, NTPC fixed Tuesday, February 6, 2024, as the record date to ascertain the eligibility of the shareholders for payment of the second interim dividend, if declared by the Board.

Earlier, the company paid its first interim dividend of Rs 2.25 per share or 22.5% for FY24. In the previous financial year, the company paid a total of 72.50% dividend amounting to Rs 7.25 per share.

NTPC's current dividend yield is at 2.3%.

NTPC Share Price:

NTPC shares stood at Rs 314.85 apiece, up by 1.84% on BSE with a market cap of over Rs 3.05 lakh crore on January 25. In a year, the stock has gained by over 86.41% on BSE.

NTPC is India's largest energy conglomerate with roots planted way back in 1970s to accelerate power development in India. Since then it has established itself as the dominant power major with a presence in the entire value chain of the power generation business.

NTPC is India's largest power utility with an installed capacity of 73,874 MW (including JVs), plans to become a 130 GW company by 2032. Established in 1975, NTPC aims to be the world's largest and best power major.