NTPC Ltd. India’s largest power generation company has declared its first quarter Q1 result for FY12 today. The company reported about 13% jump in its net profit to Rs.2,076 crore versus Rs.1841.9 crore in the same period on YoY basis. Its net sales went up 9.5% to Rs.14,171 crore from Rs.12,944.5 crore on YoY basis. Also company’s expenditure rose by 10% to Rs.119.46 crore from Rs.108.21 crore as compared to previous year. There was a jump of about 30% in other income, it was reported at Rs.644 crore. EBITDA increased 2% to Rs.2,866 crore against Rs.2,806 crore, the numbers were also inline as expected by the market participants. However the fuel cost has gone up 12% in this first quarter to Rs.9,750 crore against Rs.8,700 crore in the previous year. There was small decline in Operating profit margin (OPM)in the June quarter, as it was at 20.23% versus 21.67% on YoY basis (year on year).
Future of NTPC Stock in short term : After reporting better than expected Q1 results we see that NTPC stock can have major upside from current levels. Technical analysis suggest us that the stock is in consolidation and one must wait for breakout then only enter the long positions. So we advice traders to enter long above the 197 levels for targets as 240 and 265 in short term (6 to 9 months). Also placing the stoploss near the 185 level on closing basis. Overall stock looks very attractive from current levels.