NHPC ‘s Q2 Update: Profit Falls by 36.85% Year-on-Year

The comprehensive analytics outlining the performance and outlook of NHPC Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at NHPC Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 4.12 %. However, it did see a marginal increase of 13.28 % from the previous quarter. Expenses ticked up slightly by 1.74 % quarter-on-quarter, aligning with the annual rise of 6.75 %. Operating profit, while up 2.36 % compared to last year, faced a quarter-on-quarter increase of 22.99 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.01 %, but an expansion of 4.65 % sequentially. Other income rose by 1.87 % compared to the last quarter, despite an annual growth of 91.81 %. Interest expenses surged remarkably by 224.63 % from the previous quarter, yet the year-over-year increase remains at a moderate 179.23 %. Depreciation costs fell by -3.74 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -3.26 %. Profit before tax grew annually by 2 % but saw an increase from the preceding quarter by 10.65 %.
Tax expenses as a percentage of profits increased slightly by 33.65 % compared to last year, with a more notable quarter-on-quarter increase of 10.43 %. Net profit fell by -36.85 % year-on-year but witnessed a -3.53 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -41.56 % but a quarterly fall of -11.76 %. In summary, NHPC Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing NHPC Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 4.12 % year-on-year growth, however, there was a minor increase of 13.28 % from the previous quarter. Expenses rose by 6.75 % compared to the previous year, with a 1.74 % increase quarter-on-quarter. Operating Profit surged by 2.36 % annually, and saw a 22.99 % increase from the last quarter.
Net Profit showed yearly decrease of -36.85 %, and experienced a -3.53 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -41.56 % annually, however dipped by -11.76 % compared to the last quarter. In essence, while NHPC Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.