NTPC‘s share price was down in the red on Friday morning even as the company’s net profit for the quarter ended September beat consensus estimates. The stock slumped over 2% to hit an intraday low of ₹401.25.

What Happened: The public sector firm reported a standalone net profit of ₹4,648 crore, marking a 19.7% increase compared to ₹3,885 crore in the same quarter last year. Revenue from operations for the September quarter stood at ₹40,327 crore, a 1.34% decline from ₹40,875 crore in the corresponding period last year.

Although the company’s revenue fell short of street expectations, its profit exceeded forecasts. Analysts had anticipated revenue of ₹42,219.9 crore and a net profit of ₹4,356 crore on average.

NTPC’s EBITDA dropped by 8.2% year-on-year, amounting to ₹9,676.4 crore, down from ₹10,537 crore. EBITDA missed Motilal Oswal’s estimates by 19%. The EBITDA margin also contracted to 24%, compared to 25.7% last year.

The company's board also announced a first interim dividend of ₹2.50 per share for the year ending March 2025, with the payment scheduled for November 18, 2024.

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Analyst Reaction: Motilal Oswal maintained its “neutral” rating on the stock. The brokerage said that NTPC’s adjusted standalone PAT came in 1% above their estimate. This performance was primarily driven by higher other income.

The analysts also highlighted that Q2FY24’s financial performance was negatively impacted by one-off adjustments amounting to ₹600 crore related to previous-year sales, contributing to the strong year-on-year growth in profit after tax.

Partnership: Separately, the company also announced a partnership with the Indian Army to establish a solar hydrogen-based microgrid at Chushul, Ladakh, providing a stable, year-round power supply to off-grid Army locations using Green Hydrogen.

Defence Minister Rajnath Singh laid the foundation stone for this innovative project via video conferencing alongside top officials from the Indian Army, NTPC, and the Ministry of Defence.

The microgrid system, designed by NTPC, will supply 200 kilowatts of power and replace diesel generators currently used in these remote locations. It will operate independently, leveraging hydrogen as an energy storage medium to ensure continuous power, even in harsh winter conditions where temperatures drop to -30°C at an altitude of 4,400 meters. NTPC will maintain the project for 25 years.

Price Action: NTPC’s share price was down 2.18% to trade at ₹402.90 as the markets opened on Friday.

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