Are NTPC latest results good or bad?

NTPC has reported its financial results for the quarter ending March 2025, highlighting several key aspects of its performance. The company's net sales reached Rs 49,833.70 crore, representing a year-on-year growth of 4.63%, which is an improvement compared to the previous quarter. This figure is the highest recorded in the last five quarters, indicating a positive trend in sales.
Operating profit also showed a favorable trend, totaling Rs 14,754.05 crore, marking the highest level in the same timeframe. However, the operating profit margin experienced a slight decline, reflecting a margin of 29.61%.

Profit After Tax (PAT) amounted to Rs 7,611.22 crore, with a year-on-year growth of 23.38%, which is also the highest in the last five quarters. This growth contributed to an increase in earnings per share (EPS) to Rs 7.85. Additionally, NTPC's cash and cash equivalents improved to Rs 11,457.10 crore, indicating enhanced short-term liquidity. The company's debt-equity ratio decreased to 1.36 times, suggesting a reduction in borrowing relative to equity capital.

On the other hand, NTPC faced challenges with interest expenses rising to Rs 3,648.04 crore, reflecting a significant increase of 32.01% quarter on quarter, which points to higher borrowing costs. Furthermore, non-operating income peaked at Rs 1,251.35 crore, raising questions about its sustainability.

Overall, NTPC's results reveal a mix of positive operational trends alongside some challenges. The company saw an adjustment in its evaluation based on these financial results.