NTPC Ltd, India’s leading state-owned power giant, has recently announced a commendable performance in its financial results for the third quarter ending December 31, 2023. The company reported a substantial 7.3% year-on-year increase in its consolidated net profit, reaching ₹5,208.9 crore. This financial upswing comes despite a slight dip in revenue, with consolidated revenue from operations experiencing a 4% decline, totaling ₹42,820.4 crore.

Interestingly, the Board of Directors has declared a second interim dividend of 22.5% (₹2.25 per share) on the face value of paid-up equity shares of ₹10 each for the financial year 2023-24. This decision follows the first interim dividend of the same amount, declared and paid in the previous quarter of 2023. These consistent dividends reflect the company’s strong financial position and commitment to delivering shareholder value.

While the net profit showed a robust increase, the operational earnings painted a different picture. The consolidated EBITDA (earnings before interest, tax, depreciation, and amortisation) declined by 21.5% to ₹11,362.2 crore. Additionally, the EBITDA margin also saw a decrease, standing at 26.5% in comparison to 32.5% in the same quarter of the previous fiscal year.

Notably, NTPC’s performance in energy production and supply was particularly impressive. The company reported an increase in gross electricity generation, achieving 89.467 billion units during the third quarter, a significant jump from 78.646 billion units in the year-ago period. Moreover, the company’s coal output increased substantially, reaching 8.09 million metric tonnes (MMT) in the quarter, up from 5.35 MMT a year ago. These figures underscore NTPC’s capacity to meet the growing energy demands of the nation.

However, the market response to these results was mixed. Following the announcement, NTPC shares fell by 1.2% on the NSE, indicating investor caution amidst the mixed financial outcomes. Despite this initial dip, the company’s long-term performance remains strong, with a 90% rally in the past year and a significant 128% increase in the last two years.

NTPC’s latest quarterly results highlight its continued growth and resilience in the energy sector. The increased net profit amidst a challenging operational landscape demonstrates the company’s efficient management and strategic vision. As India’s energy demand continues to rise, NTPC’s role as a key player in the sector remains more critical than ever.