NHPC's share price faced pressure on Thursday morning, as market reaction to the company's June quarter results was tepid.

What Happened: The company’s consolidated net profit for the quarter saw a marginal increase of around 1.18%, reaching ₹1,108.46 crore, compared with ₹1,095.38 crore in the same quarter last year.

However, revenue from operations came in at ₹2,694 crore, down about 2% from ₹2,757 crore in the corresponding period of the previous year.

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Reacting to the results, Kotak Institutional Equities maintained its “reduce” rating for the stock with a price target of ₹68. The target reflects an around 32% downside from the stock’s last closing price of ₹100.55.

The analysts said that the company’s June quarter standalone results met its estimates on revenue, EBITDA and net profit.

However, the domestic brokerage noted that NHPC’s earnings for the quarter were boosted by a ₹99.3 crore writeback of a provision related to its Bursar project, as this amount will now be reimbursed by the government.

The earnings also benefited from rate-regulated income of ₹58.4 crore in Q1FY25, up from ₹21.9 crore in Q1FY24.

Price Action: NHPC’s share price was down 0.89% to trade at ₹99.66 in the early hours of trading on Thursday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.