NHPC Ltd's Q1 FY25 Financials Show Flat Performance, Improvement in Cash Flow and Liquidity
Net Profit Margin – Annually: Lowest at 19.68% in the last five years.Company’s profitability has decreased in the last five years.
NHPC Ltd, a largecap company in the power industry, has recently declared its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.
According to the financials, NHPC Ltd has shown a flat performance in the quarter, with a score of 2, which is an improvement from the previous quarter’s score of -10. The company’s operating cash flow has been consistently growing over the last three years, with the highest amount of Rs 6,937.50 crore generated annually. This indicates that the company has been able to generate higher cash revenues from its business operations.
In terms of liquidity, NHPC Ltd has shown improvement with its cash and cash equivalents reaching the highest amount of Rs 3,622.38 crore in the last six half-yearly periods. The company has also been able to settle its debtors faster, with the debtors turnover ratio reaching its highest at 2.18 times in the last five half-yearly periods.
However, there are some areas that need improvement for NHPC Ltd. The company’s debt-equity ratio has reached its highest at 0.84 times in the last five half-yearly periods, indicating that the company is borrowing more to fund its operations. This may lead to a stressed liquidity situation. Additionally, the company’s net profit margin has decreased in the last five years, with the lowest being 19.68%. The earnings per share have also decreased in the last five years, with the lowest at Rs 1.12.
Overall, NHPC Ltd’s financial performance for the quarter ending March 2024 has been flat, with some areas showing improvement and others needing attention. Investors are advised to hold their stock and keep an eye on the company’s future financial results.
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