NTPC’s finances to remain within rating expectation: Moody’s

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New Delhi | Published: May 31, 2016 6:47:23 PM

Moody's Investors Service today said NTPC's 2015-16 results were in line with its projections and the company's financial position is likely to remain within its rating expectation over the next 12-18 months.

Moody's“NTPC Ltd’s (Baa3 positive) results for fiscal year ending March 2016 (FY16) are within Moody’s expectations. Accordingly, the company’s Baa3 issuer rating and positive outlook are unaffected by the results,” Moody’s Investors Service said in a statement. (AP Photo)

Moody’s Investors Service today said NTPC’s 2015-16 results were in line with its projections and the company’s financial position is likely to remain within its rating expectation over the next 12-18 months.

“NTPC Ltd’s (Baa3 positive) results for fiscal year ending March 2016 (FY16) are within Moody’s expectations. Accordingly, the company’s Baa3 issuer rating and positive outlook are unaffected by the results,” Moody’s Investors Service said in a statement.

State-run power giant NTPC had yesterday reported 7.73 per cent drop in its standalone net profit at Rs 2,716.41 crore in the March quarter due to low demand from discoms resulting in sales dip.

The company reported a standalone net profit of Rs 10,242.91 crore for the full fiscal as compared to Rs 10,290.86 crore in 2014-15.
“NTPC’s FY2016 results are in line with our expectations, given they are underpinned by its relatively predictable cash flows from its regulated power business,” Moody’s Vice President and Senior Analyst Abhishek Tyagi said.

Over the next 12-18 months, Moody’s expects NTPC’s financial position to remain within rating expectation, the statement said.
Fuel cost for NTPC in 2015-16 declined by 10 per cent year-on-year due to lower coal imports and reduction in domestic gas costs.
The average tariff for 2015-16 was Rs 3.18 per unit, which was down 2.5 per cent year-on-year.

Based on NTPC’s FY16 results, its credit metrics remain within the tolerance limits for its Baa3 ratings, it added.

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