Result Update NHPC

Result Update NHPC  

NHPC : Execution to Pick Up in H2

Reco : Buy    Cmp : 22    Target : 24

NHPC Q2 adjusted PAT at Rs 7.2 bn was in line with our estimate but below street estimate of Rs 8 bn. Reported PAT of Rs 7.8 bn includes Rs 0.8 bn prior period sales booked in the current quarter. Our interaction with the management indicated execution pick in H2FY13 with 900 MW (current capacity of ~5.5 GW) likely to be added by end FY13. Incentive income in H1 was Rs 3.3 bn (Rs 3.5 bn YoY) resulting in core RoE of 20% on operational assets.