Shares of hydropower company NHPC were muted on Thursday ahead of its second-quarter results.

What Happened: Antique Broking in its estimates for NHPC’s results said the company’s performance could be affected by the flash floods that hit Sikkim during the third quarter of FY24. The floods have affected the Teesta-V project, which is designed to produce 26 billion units of energy annually.

The brokerage expects the public sector stock’s consolidated revenue to reach ₹3,077.8 crore for the quarter, marking a 5% increase from the ₹2,931.3 crore reported in the September quarter of 2023. However, net profit is expected to decline by around 21% year-on-year, to ₹1,214.5 crore.

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Kotak Securities noted that NHPC’s power generation is expected to drop to 8.5 billion units, reflecting a 4.5% year-on-year decline.

The brokerage estimates NHPC's standalone revenue at ₹2,568.6 crore, with net profit expected to fall by 30% year on year to ₹994.5 crore. The decline in profit after tax is anticipated mainly due to the lower generation in Q2FY25 and the impact of a ₹480 crore deferred tax credit that had inflated earnings in the same quarter last year.

Elara Capital sees the firm’s net profit declining 7.6% year on year to ₹1,336.7 crore in the quarter due to lower incentive income on weak generation. Standalone revenue is expected to come in at around ₹2,595 crore, representing a jump of 4.4% compared to the same period a year ago.

Price Action: NHPC was trading flat at ₹84.35 on Thursday morning.

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