NHPC Q3 Results: Net Profit Plunges 52.5% to ₹231 Crore, Revenue Up 11.3%; Dividend Declared
NHPC Q3 Performance at a Glance
NHPC: State-owned hydropower giant company announced its financial results for the third quarter of FY25 on February 7, 2025. The company reported a sharp decline of 52.5% in net profit to ₹231 crore, compared to ₹486.7 crore in the same quarter last year. The steep drop in profit was primarily due to higher expenses, which surged to ₹2,217.51 crore from ₹1,733.01 crore a year ago.
However, NHPC’s revenue from operations rose by 11.3% year-on-year (YoY) to ₹2,286.8 crore, up from ₹2,055.5 crore in Q3FY24. This growth was driven by increased electricity sales and better operational efficiency.
Despite the dip in profits, it has declared an interim dividend of ₹1.40 per equity share (14% of the face value), providing some relief to its shareholders.
Company’s Q3 Results: Key Financial Highlights
| Financial Metric | Q3FY25 (₹ Cr.) | Q3FY24 (₹ Cr.) | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | 2,286.8 | 2,055.5 | ↑ 11.3% |
| Total Income | 2,616.89 | 2,549.69 | ↑ 2.6% |
| Total Expenses | 2,217.51 | 1,733.01 | ↑ 28% |
| Net Profit | 231 | 486.7 | ↓ 52.5% |
| Interim Dividend (per share) | ₹1.40 | ₹1.40 | – |
Higher Expenses Dent NHPC’s Profitability
A steep rise in total expenses significantly impacted it’s bottom line. While the company’s revenue saw decent growth, the sharp increase in costs weighed heavily on net earnings. This expense surge could be attributed to rising operational costs, maintenance expenses, and possibly increased financing costs due to its high debt levels.
The company’s profitability, measured through margins, also took a hit. Investors will be closely watching NHPC’s strategies to control costs and improve efficiency in the coming quarters.
Dividend Announcement: Good News for Shareholders
In a positive move, Company’s board approved an interim dividend of ₹1.40 per share, maintaining last year’s payout. This reflects the company’s commitment to rewarding its investors despite the profit decline.
Key Dividend Details:
- Record Date: February 13, 2025
- Payment Schedule: As per the Companies Act, 2013
Investors who hold NHPC shares as of the record date will be eligible to receive the dividend.
NHPC Stock Performance and Market Valuation
Ahead of the results announcement, NHPC’s stock closed 0.28% lower at ₹77.43 on the BSE. The stock has been trading within a 52-week high/low range of ₹118 – ₹72.2.
| Stock & Financial Metrics | Values |
|---|---|
| Market Capitalization | ₹77,779 Cr. |
| Current Price | ₹77.4 |
| 52-Week High/Low | ₹118 / ₹72.2 |
| Stock P/E | 28.7 |
| Book Value per Share | ₹40.0 |
| Dividend Yield | 2.45% |
| Return on Capital Employed (ROCE) | 7.67% |
| Return on Equity (ROE) | 9.61% |
| Debt to Equity Ratio | 0.85 |
| Industry P/E | 30.3 |
| Total Debt | ₹34,210 Cr. |
| PEG Ratio | 3.12 |
| Intrinsic Value | ₹29.4 |
| Graham Number | ₹49.2 |
| Piotroski Score | 4.00 |
NHPC’s P/E ratio of 28.7 is slightly lower than the industry P/E of 30.3, indicating that the stock is fairly valued compared to its peers. However, the high debt of ₹34,210 crore remains a concern. Investors should monitor NHPC’s debt management strategy in the upcoming quarters.
Outlook: What Lies Ahead for NHPC?
Despite the profit slump, NHPC’s strong revenue growth and dividend payout indicate the company’s long-term stability. The hydropower giant remains a key player in India’s energy sector, and the government’s push for renewable energy could benefit NHPC in the future.
However, high debt levels and rising expenses are concerns that need to be addressed. If NHPC can control costs and improve efficiency, it may witness a rebound in profitability in the coming quarters.
Investors should keep an eye on:
✔️ NHPC’s cost-cutting initiatives
✔️ Future capacity expansion and new projects
✔️ Impact of regulatory policies on the power sector
✔️ Changes in global energy prices affecting hydropower
Conclusion
NHPC’s Q3FY25 results present a mixed picture—while revenue growth remains strong, higher expenses have significantly eroded profits. The company’s solid market presence, dividend declaration, and stable revenue streams are positives, but profitability pressures and debt remain concerns.
For long-term investors, NHPC remains a steady dividend-paying stock with growth potential in the renewable energy sector. However, short-term volatility might persist due to profit pressures. Investors should adopt a cautious approach, keeping a close watch on the company’s cost-control measures and upcoming projects.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.