Hydropower major NHPC is scheduled to post its earnings for the September quarter on November 7.

What Happened: According to a preview note from Antique Broking, NHPC's operations could be affected by the flash floods that hit Sikkim during the third quarter of FY24. The floods have impacted the Teesta-V project, which has a design energy output of 26 billion units annually.

The project’s annual fixed charges amount to ₹600 crore, including incentives for the full year. While NHPC has insurance coverage for 12 months, the company faces the challenge of ensuring the timely commissioning of its key projects, including Parbati and Lower Subansiri.

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The brokerage expects the PSU’s consolidated revenue to come in at ₹3,077.8 crore, a 5% increase from the ₹2,931.3 crore reported in the September quarter of 2023. Net profit, on the other hand, is expected to slump around 21% year-on-year ₹1,214.5 crore.

Kotak Securities also highlights that NHPC’s power generation is expected to decline to 8.5 billion units, representing a 4.5% year-on-year drop, which could negatively impact the company's overall earnings profile.

A decline in profit after tax is anticipated on a year-on-year basis, primarily due to the lower generation in the second quarter of FY25, as well as the impact of a deferred tax credit of ₹480 crore that had boosted earnings in the base quarter of the last year.

NHPC’s standalone revenue is pegged at ₹2,568.6 crore by the brokerage firm. Net profit is expected to come down 30% YoY at ₹994.5 crore.

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