State-owned NHPC Ltd announced on September 3, 2024, that it has re-signed a memorandum of understanding (MoU) with the Department of Water Resources (WRD) of Maharashtra to develop energy storage systems, focusing on pumped storage projects (PSPs) across the state.
This move follows a previous MoU with the Department of Energy for developing renewable energy sources, including solar, wind, and hybrid systems, totaling 7,350 MW. The updated MoU comes after a corrigendum issued on July 31, 2024, which addressed the state's policy for developing PSPs through public-private partnerships.
NHPC has announced a year-on-year (YoY) increase of 1.2% in net profit, amounting to Rs.1,108.5 crore for the first quarter ending June 30, 2024. In the same quarter of the previous fiscal year, the company recorded a net profit of Rs.1,095 crore, as stated in a regulatory filing.
The company's operational revenue experienced a decline of 2.3%, falling to Rs.2,694.2 crore from Rs.2,757.3 crore in the corresponding period of the prior fiscal year. Additionally, at the operating level, EBITDA decreased by 2.8%, reaching Rs.1,462.6 crore in the first quarter of this fiscal year, compared to Rs.1,504.6 crore in the same period last year.
The EBITDA margin of NHPC Ltd. in the reporting quarter was 54.3%, which represents a slight decline compared to the 54.6% margin recorded in the first quarter of the fiscal year 2024 (Q1 FY24). The EBITDA margin is a financial metric that measures a company's operating profitability as a percentage of its total revenue, before accounting for interest, taxes, depreciation, and amortization (EBITDA).
A decrease in this margin, even a small one, could indicate slightly higher operating costs, reduced revenue, or a combination of both.
Despite this minor decrease in the EBITDA margin, the market response to NHPC Ltd.'s performance was positive, as reflected in its share price. Shares of NHPC Ltd. closed at Rs.99.04 on the Bombay Stock Exchange (BSE), marking an increase of Rs.1.18, or 1.21%, from the previous trading session.
This rise suggests that investors remained optimistic about the company's overall performance, possibly due to other favorable financial indicators or positive market sentiment toward the company.
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