NTPC Green Energy Reports 18% Jump in Q3 FY25 Profit, But Faces Rising Costs

Introduction:

NTPC Green Energy, a chief participant in India’s renewable electricity region and a subsidiary of the nation-owned NTPC, has posted a superb 18% boom in its consolidated internet profit for the 0.33 area of FY25. The company’s earnings surged to Rs sixty five.61 crore, up from Rs 55.61 crore in Q3 FY24, signaling a strong performance in a hard financial surroundings.

Key Financial Highlights:

Revenue Growth: The company’s revenue from operations rose by 13.2% year-on-year, reaching Rs 505.08 crore for the quarter ending December 31, 2024. However, compared to the previous quarter (Q2 FY25), the growth in revenue was minimal at 0.24%.

Profit Before Tax: The company reported a 23.8% increase in profit before tax, which stood at Rs 99.24 crore, compared to Rs 80.18 crore in the same quarter last year.

While the net profit and operational performance show healthy growth, there was a notable uptick in costs. NTPC Green Energy’s total expenses rose by 25.8% year-on-year to Rs 482.22 crore in Q3 FY25, primarily driven by higher finance costs and employee benefit expenses.

Finance costs rose 18.8% to Rs 206.10 crore, while employee benefits surged by a significant 111.2% to Rs 18.92 crore. This rise in costs puts pressure on the company’s bottom line despite its higher earnings.

NTPC Green Energy Reports Strong Q3 FY25 Profit Growth Amid Rising Costs:

Nine-Month Overview:

On a nine-month basis, NTPC Green Energy’s performance saw a decline in profit, with net profit falling 7.5% to Rs 242.26 crore. Revenue for the first nine months of FY25 stood at Rs 1,587.37 crore, marking a 9.1% increase compared to the same period in FY24.

Stock Market Performance:

The company, which listed on the stock exchanges in November 2024, saw its shares debut with a 3.33% premium to the issue price, opening at Rs 111.60. However, its stock has since faced some pressure, slipping 3.57% to Rs 108.15 on the Bombay Stock Exchange (BSE).

Conclusion:

NTPC Green Energy’s robust growth in the renewable energy space highlights its strategic importance in India’s clean energy transition. However, its rising costs and profitability challenges, especially in light of a declining nine-month net profit, could warrant close monitoring.

Investors will be watching the company closely as it navigates these cost pressures while trying to sustain its growth momentum in the renewable energy sector.

Frequently Asked Questions FAQ:

What is the net profit of NTPC Green Energy for Q3 FY25?
- NTPC Green Energy reported a consolidated net profit of Rs 65.61 crore for Q3 FY25, reflecting an 18% increase compared to Rs 55.61 crore in Q3 FY24.
How did NTPC Green Energy’s revenue perform in Q3 FY25?
- The company’s revenue from operations grew by 13.2% year-on-year, reaching Rs 505.08 crore for the quarter ending December 31, 2024.
How did NTPC Green Energy’s profit compare to the previous quarter (Q2 FY25)?
- Compared to Q2 FY25, NTPC Green Energy’s net profit surged by 72.4%, while revenue saw a slight increase of 0.24%.
What were NTPC Green Energy’s expenses in Q3 FY25?
- The company’s total expenses increased by 25.8% year-on-year to Rs 482.22 crore in Q3 FY25. This rise was driven by an increase in finance costs and employee benefit expenses.
Why did NTPC Green Energy’s employee benefit expenses rise sharply in Q3 FY25?
- Employee benefit expenses surged by 111.2% year-on-year to Rs 18.92 crore. The sharp increase is likely due to higher compensation, restructuring, or other human resource-related costs, but specifics have not been disclosed.
What is the profit before tax (PBT) for Q3 FY25?
- NTPC Green Energy reported a profit before tax of Rs 99.24 crore in Q3 FY25, up 23.8% compared to Rs 80.18 crore in Q3 FY24.
How did NTPC Green Energy perform on a nine-month basis?
- For the nine months ended December 31, 2024, NTPC Green Energy saw a 7.5% decline in net profit, which stood at Rs 242.26 crore. However, the company’s revenue for the period rose by 9.1% to Rs 1,587.37 crore.
What is the status of NTPC Green Energy’s stock?
- NTPC Green Energy was listed on the stock exchanges on November 27, 2024. The stock opened at Rs 111.60, a 3.33% premium over the issue price. However, as of now, the stock has decreased by 3.57%, trading at Rs 108.15 on the BSE.
Is NTPC Green Energy facing any challenges?
- While the company’s growth in revenue and profit is positive, rising costs—especially in finance and employee expenses—have put pressure on its overall profitability. Investors and analysts will need to monitor these challenges closely.
What is NTPC Green Energy’s role in India’s renewable energy market?
- NTPC Green Energy is the largest renewable energy (excluding hydro) public sector enterprise in India in terms of operating capacity. As a subsidiary of NTPC, it plays a crucial role in India’s push towards clean and sustainable energy.
What are the prospects for NTPC Green Energy going forward?
- While facing some challenges in cost management, NTPC Green Energy’s leadership in the renewable energy space positions it well for future growth. The company’s focus on expanding its renewable capacity and navigating the rising cost pressures will be key to its success in the coming quarters.

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