{"id":301236,"date":"2019-11-16T12:20:14","date_gmt":"2019-11-16T06:50:14","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=301236"},"modified":"2019-11-16T12:20:14","modified_gmt":"2019-11-16T06:50:14","slug":"ntpc-rating-buy-bottomline-boosted-by-surcharge-income","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/ntpc-rating-buy-bottomline-boosted-by-surcharge-income\/","title":{"rendered":"NTPC rating | Buy \u2014 Bottomline boosted by surcharge income"},"content":{"rendered":"<p>NTPC\u2019s Q2FY20 performance reflected the deteriorating financial health of discoms and domestic coal shortage. As a result, receivables (jumped 2x from March 2019) and cash flow (negative FCF in H1FY20) took a hit. However, these metrics have improved subsequently due to the implementation of the letter of credit mechanism. PAT beat estimates by 20% primarily due to high late payment surcharge income of Rs 6.5 bn.<\/p>\n<p>Coal-based under-recoveries (Rs 3 bn in Q2) have resurfaced, but management is confident of recouping the same in ensuing quarters. Finally, commercialisation of capacities has picked up considerably (2.2GW in Q3), which is comforting. Overall, led by higher commercialisation and valuation comfort we maintain Buy with a target price of Rs 150. NTPC remains our top pick in the utilities space.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NTPC\u2019s Q2FY20 performance reflected the deteriorating financial health of discoms and domestic coal shortage. As a result, receivables (jumped 2x from March 2019) and cash flow (negative FCF in H1FY20) took a hit. However, these metrics have improved subsequently due to the implementation of the letter of credit mechanism. PAT beat estimates by 20% primarily due to high late payment surcharge income of Rs 6.5 bn. Coal-based under-recoveries (Rs 3 bn in Q2) have resurfaced, but management is confident of recouping the same in ensuing quarters. Finally, commercialisation of capacities has picked up considerably (2.2GW in Q3), which is comforting. [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-301236","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/301236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=301236"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/301236\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=301236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=301236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=301236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}